Unit 1 Notes - Topic 4 (Business Cycles)

·      Business Cycle – Fluctuations in economic activity that an economy experiences over a period of time

-       Expansion – Periods of economic upturn when output and employment are rising

-       Peak – The highest point. The period in which business activity has reached a temporary maximum. At near or full employment

-       Contraction (Recession) – A period of decline in total output, income and employment

Trough – Lowest Point. Economy goes from recession to a depression

END OF UNIT 1 NOTES!!!!!