The business cycle describes the rise and fall in production output of goods and services in an economy.
 | | Term of the Day | Words to Know | | |  | | 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 the rise and fall in the real gross domestic product (GDP) or the GDP adjusted for inflation.
The business cycle should not be confused with market cycles, which are measured using broad stock market indices. The business cycle is also different from the debt cycle, which refers to the rise and fall in household and government debt.
The business cycle is also known as the economic cycle or trade cycle. | | Read More » | | Related to "Business Cycle" | | | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Contraction | | A contraction is a phase of the business cycle where a country's real gross domestic product (GDP) has declined for two or more consecutive quarters. | | Read More » | | | Expansion | | Expansion is the phase of the business cycle when the economy moves to a peak surging employment levels, consumer confidence, and GDP. | | Read More » | | | Trough | | A trough, in economic terms, can refer to a stage in the business cycle where activity is bottoming, or where prices are bottoming, before a rise. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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