Business cycle
From The Art and Popular Culture Encyclopedia
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The business cycle or economic cycle (also called boom and bust) is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).
Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite the often-applied term cycles, these fluctuations in economic activity do not exhibit uniform or predictable periodicity.
The common or popular usage boom-and-bust cycle refers to fluctuations in which the expansion is rapid and the contraction severe.
In economics, the term Boom and bust describes a time period characterized by sustained increases in several economic indicators followed by a sharp and rapid contraction.
See also
- Baby Boom
- Economic miracle
- Wirtschaftswunder, an economic boom
- Welfare
- Farm subsidy
- Austrian School
- Boomtown
- Economic bubble
- Financial crisis
- Real estate (property) bubble
- Sudden stop (economics)
- Dynamic stochastic general equilibrium
- Information revolution
- Inventory investment over the business cycle
- List of commodity booms
- List of financial crises in the United States
- Market trend
- Skyscraper Index
- Welfare cost of business cycles
- World-systems theory
Case studies:
- 1994 economic crisis in Mexico
- 1997 Asian financial crisis
- 1998 Russian financial crisis
- Argentine economic crisis (1999–2002)
- Financial crisis (2007–present)