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These phases are contraction, trough, expansion, and peak. Contraction is a slowing down of the pace in economic activity. Trough is the lower turning point of a business cycle, where a contraction turns into an expansion. An expansion is a speeding up of the pace in economic activity. Peak is the upper turning of a business cycle. An economic recession occurs if a contraction is severe enough.
The cycle extends from a Gross Domestic Product base line through one rise and one decline, and then back to the base line. This period typically averages about twenty one and a half years. This fluctuating was once thought to be a predictable and regular process...
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