The Business Cycle - Daniel Canace | Biblioteka

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Economists recognize that the economy doesn't grow smoothly, but in regular patterns. They refer to this as:

the circular flow of economic activity

the Business Cycle

the Classical Model

the Keynesian Cycle

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recession, trough, advance, peak

expansion, intermediate 1, recession, intermediate 2

expansion, peak, reversal, prosperity

expansion, peak, recession, trough

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contracts for at least three years in a row

contracts for one month

contracts for at least six months

contracts for at least two years minimum

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real GDP is shrinking, prices are rising, and unemployment is low

real GDP is growing, prices are rising, and unemployment is low.

real GDP is growing, prices are falling, and unemployment is low.

real GDP is shrinking, prices are falling, and unemployment is low.

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3%

5%

4%

7%