What is an 'Economic Cycle'?

The economic cycle is the natural fluctuation of the economy between periods of expansion (growth) and contraction (recession). ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Economic Cycle The economic cycle is the natural fluctuation of the economy between periods of expansion (growth) and contraction (recession). Factors such as gross domestic product (GDP), interest rates, levels of employment and consumer spending can help to determine the current stage of the economic cycle. Read More » Related to "Economic Cycle" What is the "Business Cycle"? The business cycle describes the rise and fall in production output of goods and services in an economy. Read More » The Impact of Recessions on Investors Understanding the business cycle and your own investment style can help you cope with economic downturns. Read More » What's an Average-Length Boom and Bust Cycle? Learn more about the timing and impact of the expansion and contraction periods of the average business cycle in the U.S. economy. Read More » Related Definitions Gross Domestic Product—GDP Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. Read More » Equilibrium Equilibrium is a state in which market supply and demand balance each other, and as a result, prices become stable. Read More » What Is Fiscal Policy? Fiscal Policy is the sister strategy to monetary policy, through which a central bank influences a nation's money supply. Read More » Monetary Policy Monetary policy: Actions of a central bank or other agencies that determine the size and rate of growth of the money supply, which will affect interest rates. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy