economic cycle
Prosperity and recession
Economic cycle refers to the recurring pattern of expansion and contraction in economic activity over time.
An economy grows, peaks, declines into recession, bottoms out, then begins growing again.
Also called business cycle.
Economists track these fluctuations through measures like GDP, employment, and consumer spending: We're in the expansion phase of the economic cycle.
The cycles vary in length and severity but have characterized market economies for centuries.
Increase in scope
- contractionReduction in size
- recessionProlonged economic decline
- recoveryRegaining what was lost
- peakUtmost height attained
trough · boom · bust · upturn · downturn · upswing · downswing · turning point
Prolonged economic decline
- depressionProlonged low state
- downturnEconomic decline period
- slowdownReduction in pace
- unemploymentBeing without paid work
layoffs · deflation · credit crunch · deleveraging · bankruptcy · insolvency · austerity · negative growth
National output abbreviation
- unemployment ratePercentage without jobs seeking work
- inflation rateSpeed of rising costs
- interest ratesPrice paid for borrowing
- leading indicatorsStatistics forecasting economic direction
consumer spending · industrial output · housing starts · yield curve · stock indices · PMI · capacity utilization · trade balance
Increase in size
- prosperityGood fortune, success
- bull marketPeriod of rising prices
- consumer confidencePublic's economic outlook measure
- capital expenditureSpending on fixed assets
profit margins · credit availability · industrial production · retail sales · housing boom · hiring spree · wage growth · capacity utilization
Air-filled film sphere
- crashSudden violent impact
- speculationUnproven theorizing or risky investment
- maniaIntense, consuming obsession
- panicUncontrollable sudden fear
irrational exuberance · overinvestment · collapse · volatility · leverage · tulip mania · dot-com bubble · housing bubble
Central bank economic controls
- fiscal policyState spending and taxation
- central bankNational currency management institution
- quantitative easingAsset purchases to boost economy
- stimulusWhat prompts a reaction
bailout · deficit spending · tightening · rate hikes · countercyclical · pump priming
Innovation displacing the obsolete
- animal spiritsInstinctive economic confidence
- multiplier effectHow spending compounds economically
expansion
Increase in scope
- contractionReduction in size
- recessionProlonged economic decline
- recoveryRegaining what was lost
peak · trough · boom · bust · upturn · downturn · upswing · downswing · turning point · inflection point
recession
Prolonged economic decline
- depressionProlonged low state
- downturnEconomic decline period
- slowdownReduction in pace
unemployment · layoffs · deflation · credit crunch · deleveraging · bankruptcy · insolvency · austerity · negative growth · wage stagnation
GDP
National output abbreviation
- unemployment ratePercentage without jobs seeking work
- inflation rateSpeed of rising costs
- interest ratesPrice paid for borrowing
leading indicators · consumer spending · industrial output · housing starts · yield curve · stock indices · PMI · capacity utilization · trade balance
growth
Increase in size
- prosperityGood fortune, success
- bull marketPeriod of rising prices
- consumer confidencePublic's economic outlook measure
capital expenditure · profit margins · credit availability · industrial production · retail sales · housing boom · hiring spree · wage growth · capacity utilization
bubble
Air-filled film sphere
- crashSudden violent impact
- speculationUnproven theorizing or risky investment
- maniaIntense, consuming obsession
panic · irrational exuberance · overinvestment · collapse · volatility · leverage · tulip mania · dot-com bubble · housing bubble · financial crisis
monetary policy
Central bank economic controls
- fiscal policyState spending and taxation
- central bankNational currency management institution
- quantitative easingAsset purchases to boost economy
stimulus · bailout · deficit spending · tightening · rate hikes · countercyclical · pump priming
creative destruction
Innovation displacing the obsolete
- animal spiritsInstinctive economic confidence
- multiplier effectHow spending compounds economically
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- economyGDP, money, inflation, inflation rate, GNP
- cyclescircle of life, cycles, period, rhythms, oscillations
- historical cyclesrise and fall, golden age, dark age, renaissance, decline
- periodic cyclesseasons, day, night, tides, circadian rhythm
- macroeconomicsGDP, GNP, gross domestic product, gross national product, inflation rate
cycle, economy, bicycle, economic, economical, economics, economize, economizing, uneconomical