Principles of Macroeconomics / Unit 3 MAC 0219 short lesson, about 20 seconds
The Business Cycle
Captions available
The idea
The business cycle is the economy's pattern of expansion and contraction. It runs peak, contraction, trough, expansion, and back to a peak.
In practice
The peak ends an expansion; the trough ends a contraction.
Where people slip
The cycle runs around a rising trend, so a trough usually sits above the previous trough rather than back where it started.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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