ECN 204 Chapter 7: chapter 7

• School: Ryerson University
• Department: Economics
• Course: ECN 204
• Professor: Tom Barbiero

Document Summary

The expansion of the economy has been interrupted by fluctuations accompanied by business cycles. Business cycles are the fluctuating increase and decrease in the level of economic activity. A cycle (a peak) varies in terms of the length of time it remains and the intensity of the cycle. A recession is an interval of time where there is a decrease in output, income and employment and is marked with the shrinking/decline of business activity. The trough portion of the business cycle is where income, total output and employment. After the trough phase of the business cycle, the economy experiences expansion where increase, real gdp and employment increase towards full employment. Business cycles are different from each other in terms of the length of time they remain and the intensity of the cycle. Business fluctuations is preferred over the business cycles because business cycles imply something that will occur regularly while fluctuations do not.