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business cycle

recurring fluctuations in economic activity consisting of recession and recovery and growth and decline


a decline in economic activity


a downturn that lasts more than 6 months


a downturn that lasts for a year or two


an increase in economic activity


a long period of expansion


purchasing and using goods and services


total value of goods and services that a country produces in a year including investments abroad


the market value of all final goods and services produced within a country in a given period of time


the economic theory that government monetary and fiscal policy should stimulate business activity and increase employment in a recession


the theory and policy that considers the best way to manage an economy and keep inflation low is by controlling the amount of money and credit that is available

exogenous theory

it looks for causes of the business cycle outside economic activity, e.g. the business cycle is caused by natural disasters, major technological inventions, elections, political shocks, etc.

endogenous theory

it looks for causes of the business cycle inside economic activity, e.g. people's spending or consumption decisions, which in turn are based on their expectations


the highest point of the business cycle


the lowest point of the business cycle


a rise in the general prices of goods and services in a particular country over a period of time, resulting in a fall in the value of money


a reduction in the amount of money in a country's economy so that prices fall or remain the same


an economic situation where there is high inflation but no increase in the jobs that are available or in business activity


if a government or a national bank reflates the economy it increases or brings back economic demand by lowering taxes, increasing government spending, lowering interest rates, etc.


production; the amount of sth that a person, a machine, an organization or an industry produces:

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