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ECON 408-001 Intermediate Macroeconomic Theory
ECON 408-001 Intermediate Macroeconomic Theory

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Answers to Quiz #4

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ECONOMICS - University of Maryland, College Park

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ECON 4514-003 Economic History of Europe
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This PDF is a selection from an out-of-print volume from... Bureau of Economic Research

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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. 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).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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