Enhance Your Learning with Economics - Business Cycles Flash Cards for quick understanding
The recurring pattern of economic expansion and contraction, characterized by fluctuations in economic activity over time.
A phase of the business cycle characterized by an increase in economic activity, including growth in GDP, employment, and investment.
The highest point of the business cycle, representing the end of the expansion phase and the beginning of a contraction phase.
A phase of the business cycle characterized by a decrease in economic activity, including a decline in GDP, employment, and investment.
The lowest point of the business cycle, representing the end of the contraction phase and the beginning of an expansion phase.
A significant decline in economic activity, lasting for a sustained period of time, typically marked by a contraction in GDP and increased unemployment.
A severe and prolonged recession, characterized by a deep contraction in economic activity, high unemployment, and a decline in prices.
The ups and downs in economic activity, including expansions and contractions, that occur as part of the business cycle.
The four main phases of the business cycle: expansion, peak, contraction, and trough.
A period of rapid economic growth, often characterized by high levels of consumer spending, business investment, and overall economic activity.
A period of economic decline, often characterized by low levels of consumer spending, business investment, and overall economic activity.
A sudden and significant change in aggregate demand, resulting in a shift in the overall level of economic activity.
A sudden and significant change in aggregate supply, resulting in a shift in the overall level of economic activity.
The phase of the business cycle following a trough, characterized by an increase in economic activity and a transition to an expansion phase.
A combination of stagnant economic growth, high unemployment, and high inflation, typically occurring during a period of economic downturn.
The total value of all goods and services produced within a country's borders during a specific period of time, often used as a measure of economic activity.
The percentage of the labor force that is unemployed and actively seeking employment, often used as an indicator of economic health.
The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
The actions taken by a central bank to manage the money supply and interest rates in order to influence economic activity.
The use of government spending and taxation to influence the economy, often used to stabilize economic fluctuations and promote growth.
The cost of borrowing money or the return on investment, often influenced by monetary policy and used to stimulate or slow down economic activity.
The total demand for goods and services in an economy at a given time, often influenced by factors such as consumer spending, investment, and government spending.
The total supply of goods and services in an economy at a given time, often influenced by factors such as labor, capital, and technology.
Statistics and data that provide insights into the overall health and direction of an economy, often used to analyze business cycles and make economic forecasts.
Economic indicators that tend to change before the overall economy, often used to predict future economic activity and business cycles.
Economic indicators that tend to change after the overall economy, often used to confirm or validate trends in economic activity and business cycles.
Economic indicators that tend to change at the same time as the overall economy, often used to provide a real-time snapshot of economic activity and business cycles.
Unemployment that occurs as a result of fluctuations in economic activity and business cycles, often caused by a decrease in aggregate demand.
Unemployment that occurs as a result of a mismatch between the skills and qualifications of workers and the available job opportunities in the economy.
Unemployment that occurs as a result of the time it takes for individuals to search for and transition between jobs, often considered a natural part of the labor market.
Unemployment that occurs as a result of predictable fluctuations in demand for certain industries or occupations based on seasonal factors, such as weather or holidays.
Inflation that occurs as a result of increased aggregate demand, often caused by factors such as increased consumer spending or government spending.
Inflation that occurs as a result of increased production costs, often caused by factors such as higher wages, increased raw material prices, or higher taxes.
An extremely high and typically accelerating inflation, often resulting in a rapid decrease in the value of a country's currency and a loss of confidence in the economy.
An increase in the production of goods and services over time, often measured by changes in real GDP or per capita GDP.
The efficiency with which inputs (such as labor and capital) are used to produce outputs (such as goods and services), often considered a key driver of economic growth.
The process of increasing the stock of capital goods in an economy, often through investment in physical assets such as buildings, machinery, and infrastructure.
Advancements in technology and innovation that lead to improvements in productivity and the production of goods and services, often driving economic growth.
Markets where individuals, businesses, and governments can buy and sell financial assets such as stocks, bonds, and derivatives, often playing a key role in the allocation of capital and the functioning of the economy.
A market where investors can buy and sell shares of publicly traded companies, often used as an indicator of overall economic health and investor sentiment.
A period of generally rising stock prices and positive investor sentiment, often characterized by optimism and expectations of future economic growth.
A period of generally falling stock prices and negative investor sentiment, often characterized by pessimism and expectations of future economic decline.
The degree of variation in the price of a financial asset over time, often influenced by factors such as economic conditions, investor sentiment, and market liquidity.
The practice of spreading investments across different assets or asset classes in order to reduce risk and potentially increase returns.
The overall attitude or feeling of investors towards a particular market or asset, often influenced by factors such as economic news, geopolitical events, and investor behavior.
A temporary reversal in the overall trend of a financial market, often characterized by a decline in prices after a period of significant gains or losses.
A sudden and significant decline in the overall value of a financial market, often resulting in panic selling and a loss of investor confidence.
A situation in which the prices of assets, such as stocks or real estate, become significantly inflated and disconnected from their underlying fundamental value, often leading to a market crash or correction.
The practice of attempting to buy or sell financial assets based on predictions or forecasts of future market movements, often considered difficult to do consistently and successfully.
A plan or approach for allocating and managing investments, often based on factors such as risk tolerance, investment goals, and market conditions.
The practice of spreading investments across different asset classes, sectors, and geographic regions in order to reduce risk and potentially increase returns.
The process of identifying, assessing, and prioritizing risks, and implementing strategies to minimize or mitigate their potential impact on investments or business operations.
The distribution of investments across different asset classes, such as stocks, bonds, and cash, in order to achieve a desired balance of risk and return.
An investment strategy that aims to replicate the performance of a specific market index or benchmark, often through the use of index funds or exchange-traded funds (ETFs).
An investment strategy that involves actively selecting and managing individual investments, often with the goal of outperforming a specific market index or benchmark.
An investment approach that involves analyzing the financial statements, management, and competitive position of a company in order to determine its intrinsic value and potential for future growth.
An investment approach that involves analyzing historical price and volume data, as well as other market indicators, to identify patterns and trends that can be used to predict future price movements.