business cycle
Boom-bust pattern
The business cycle is the recurring pattern of expansion and contraction in economic activity.
Economies grow, reach a peak, decline into recession, hit a trough, then recover and grow again.
The cycle varies in length and intensity, and economists debate its causes and predictability.
The business cycle has historically averaged about five years from peak to peak.
Prolonged economic decline
- slowdownReduction in pace
- downturnEconomic decline period
- declineDecrease or refuse
- slumpExtended period of decline
cooling · softening · negative growth · layoffs · unemployment · reduced spending · retrenchment · pessimism
Increase in scope
- peakUtmost height attained
- contractionReduction in size
- troughOpen container for animal feed
- recoveryRegaining what was lost
upturn · downturn · upswing · downswing · boom · bust · turning point · inflection
Increase in size
- prosperityGood fortune, success
- boomLoud deep sound
- upturnImprovement in conditions
- upswingPeriod of increase
bull market · job creation · capital investment · consumer spending · wage growth · corporate profits · industrial production · housing starts
National output abbreviation
- unemployment ratePercentage without jobs seeking work
- inflationSustained price level increase
- CPIInflation measurement abbreviation
- industrial productionGoods made by factories
consumer confidence · PMI · yield curve · housing starts · retail sales · leading indicators · jobless claims · capacity utilization
Sudden violent impact
- panicUncontrollable sudden fear
- bubbleAir-filled film sphere
- collapseSudden structural failure
- bustFailure or sculpture
financial crisis · credit crunch · bank run · bailout · contagion · default · deleveraging · foreclosure
Central bank economic controls
- fiscal policyState spending and taxation
- interest ratesPrice paid for borrowing
- stimulusWhat prompts a reaction
- austerityEnforced economic stringency
quantitative easing · central bank · Federal Reserve · countercyclical · stabilization · intervention · regulation · tax policy
recession
Prolonged economic decline
slump · cooling · softening · negative growth · layoffs · unemployment · reduced spending · retrenchment · pessimism · deflation
expansion
Increase in scope
- peakUtmost height attained
- contractionReduction in size
- troughOpen container for animal feed
recovery · upturn · downturn · upswing · downswing · boom · bust · turning point · inflection · duration
growth
Increase in size
- prosperityGood fortune, success
- boomLoud deep sound
- upturnImprovement in conditions
upswing · bull market · job creation · capital investment · consumer spending · wage growth · corporate profits · industrial production · housing starts · retail sales
GDP
National output abbreviation
- unemployment ratePercentage without jobs seeking work
- inflationSustained price level increase
- CPIInflation measurement abbreviation
industrial production · consumer confidence · PMI · yield curve · housing starts · retail sales · leading indicators · jobless claims · capacity utilization
crash
Sudden violent impact
bust · financial crisis · credit crunch · bank run · bailout · contagion · default · deleveraging · foreclosure · bankruptcy
monetary policy
Central bank economic controls
- fiscal policyState spending and taxation
- interest ratesPrice paid for borrowing
- stimulusWhat prompts a reaction
austerity · quantitative easing · central bank · Federal Reserve · countercyclical · stabilization · intervention · regulation · tax policy · government spending
- economyGDP, money, inflation, inflation rate, GNP
- cyclescircle of life, cycles, period, rhythms, oscillations
- economic chartsdemand curve, supply curve, budget line, yield curve, marginal cost
- external forceseconomic factors, environmental factors, market forces, demographics, economic growth
- macroeconomicsGDP, GNP, gross domestic product, gross national product, inflation rate
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
business cycleeconomic stability
Sustained healthy financial conditions
stable equilibrium · linear growth · sustainable growth · economic stagnation
business, cycle, bicycle, recycle, cycling, cyclical, unicycle, cyclotron, cyclonic