AP MacroeconomicsThe Business Cycle
Business Cycle
The business cycle is the fluctuation in economic activity over time, characterized by periods of expansion and contraction.
The business cycle represents the ups and downs in an economy's overall output, employment, and income. It consists of four main phases: expansion, peak, contraction, and trough. During an expansion, economic activity increases, while during a contraction, it decreases. The business cycle is influenced by various factors, including changes in consumer spending, business investment, government policies, and international events.
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