What Is the Business Cycle?
The peak is the top before a fall and the trough is the bottom before a rise.
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1.What is a trough?
The peak is the top before a fall and the trough is the bottom before a rise.
2.What is an expansion?
An expansion runs from a trough to the next peak; a recession from a peak to the next trough.
3.In the example, growth is 1.5, then 1, then 0.5. What is happening just before the peak?
Growth of 1.5, 1 and 0.5 means output is still up but slowing, which can still feel like good times.
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Sources (3)
- National Bureau of Economic Research: Business Cycle Dating (Committee, Methodik, FAQ)
- National Bureau of Economic Research: US Business Cycle Expansions and Contractions (Tabelle)
- Eigene Berechnung (synthetisches Rechenbeispiel
Education only. Not financial advice.