Unit 1, Subject 4 AP ECO

Business cycle: fluctuations in economic activity that an economy experience over a period of time.

Expansion: a period of economic upturn when output and input (employment) are rising.

Peak: highest point, where business activity has reached a temporary maximum. Near or at full employment.

Contraction / Recession: a period of decline in total output, income, and employment.

Trough: lowest point, economy turns from recession to depression.

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