business cycles
Boom and bust
Business cycles are the recurring pattern of expansion and contraction in economic activity.
An economy grows, peaks, declines into recession, bottoms out, then grows again.
Economists track these fluctuations through indicators like GDP, employment, and consumer spending.
The cycles vary in length and intensity: The business cycle turned, and layoffs followed.
Increase in scope
- peakUtmost height attained
- contractionReduction in size
- troughOpen container for animal feed
- recoveryRegaining what was lost
boom · bust · recession · depression · upturn · downturn · upswing · downswing
National output abbreviation
- economic indicatorsData measuring financial health
- leading indicatorsStatistics forecasting economic direction
- capacity utilizationProduction as proportion available
- unemployment ratePercentage without jobs seeking work
consumer confidence · yield curve · industrial production · retail sales · housing starts · job creation · inflation rate · interest rates
Repeated back-and-forth movement
- periodicityRecurring at regular intervals
- amplitudeMaximum oscillation displacement
- frequencyRate of recurrence
- volatilityRapid, unpredictable changeability
wave · rhythm · ebb and flow · alternation · variation · swing · momentum · trend
Central bank economic controls
- fiscal policyState spending and taxation
- stimulusWhat prompts a reaction
- austerityEnforced economic stringency
- quantitative easingAsset purchases to boost economy
central bank · deficit spending · tax cuts · bailout · intervention · stabilization · fine-tuning · crowding out
Pro-intervention economic theory
- monetarismEconomic focus on currency regulation
- AustrianFrom the Alpine republic
- supply shockSudden change in production capacity
- multiplier effectHow spending compounds economically
animal spirits · creative destruction · endogenous · exogenous · self-correcting · disequilibrium
expansion
Increase in scope
- peakUtmost height attained
- contractionReduction in size
- troughOpen container for animal feed
recovery · boom · bust · recession · depression · upturn · downturn · upswing · downswing · turning point
GDP
National output abbreviation
- economic indicatorsData measuring financial health
- leading indicatorsStatistics forecasting economic direction
- capacity utilizationProduction as proportion available
unemployment rate · consumer confidence · yield curve · industrial production · retail sales · housing starts · job creation · inflation rate · interest rates
oscillation
Repeated back-and-forth movement
- periodicityRecurring at regular intervals
- amplitudeMaximum oscillation displacement
- frequencyRate of recurrence
volatility · wave · rhythm · ebb and flow · alternation · variation · swing · momentum · trend · duration
monetary policy
Central bank economic controls
- fiscal policyState spending and taxation
- stimulusWhat prompts a reaction
- austerityEnforced economic stringency
quantitative easing · central bank · deficit spending · tax cuts · bailout · intervention · stabilization · fine-tuning · crowding out
Keynesian
Pro-intervention economic theory
- monetarismEconomic focus on currency regulation
- AustrianFrom the Alpine republic
- supply shockSudden change in production capacity
multiplier effect · animal spirits · creative destruction · endogenous · exogenous · self-correcting · disequilibrium
- cyclescircle of life, period, rhythms, oscillations, full circle
- macroeconomicsGDP, GNP, gross domestic product, gross national product, inflation rate
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- forecastsweather forecast, sales forecast, revenue forecast, budget forecast, profit forecast
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- corporate historyincorporation, chartered companies, limited liability, corporate law, mergers
business cycleseconomic stability
Sustained healthy financial conditions
linear growth · stable equilibrium · steady state · market stability · price stability
business, cycle, recycle, businessman, cycling, recycling, cycles, bicycles, cyclical