The business cycle describes the rise and fall in production output of goods and services in an economy. Business cycles are generally measured using rise and fall in real – inflation-adjusted – gross domestic product (GDP), which includes output from the household and nonprofit sector and the government sector, as well as business output.
 | | Business Cycle | | The business cycle describes the rise and fall in production output of goods and services in an economy. Business cycles are generally measured using rise and fall in real – inflation-adjusted – gross domestic product (GDP), which includes output from the household and nonprofit sector and the government sector, as well as business output. "Output cycle" is therefore a better description of what is measured. The business or output cycle should not be confused with market cycles, measured using broad stock market indices; or the debt cycle, referring to the rise and fall in household and government debt. | | Breaking it Down: | | The business cycle or output cycle is often visualized in terms of consistent expansions and contraction, almost like a... | | Read More » | | Related to "Business Cycle" | | | | Expansion | | Expansion is the phase of the business cycle when the economy moves from a trough to a peak. | | Read More » | | | Recession Resistant | | Recession resistant refers to an entity such as stocks, companies, or jobs which are not greatly affected by a recession. | | Read More » | | | The Great Recession | | The Great Recession was the sharp decline in economic activity during the late 2000s and is considered the largest downturn since the Great Depression. | | Read More » | | | Trough | | A trough is the stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to an expansion. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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