Business Cycle Vocabulary

representation concerning the patterns of expansion and contraction in the economy; consisting of the growth, peak, recession and trough phases

• Peak

• Recession

• Growth

• Business Cycle

increase in the key measurements of aggregate economic activities such as employment, sales and income resulting in a rise in productivity; also known as expansion or recovery

• Peak

• Recession

• Growth

• Business Cycle

period in which business activity has reached a maximum

• Peak

• Recession

• Growth

• Business Cycle

two consecutive quarterly declines in gross domestic product; also known as contraction

• Trough

• Recession

• Growth

• Business Cycle

lowest levels experienced during a recession; accounts for the least amount of output and employment

• Trough

• Recession

• Growth

• Business Cycle

sum or whole amount of something

• Trough

• Aggregate

• Growth

• Business Cycle

measurement of physical output for each unit of input used; usually referring to labor hours

• Productivity

• Equity

• Dividends

• Opportunity Cost

value of shares the company issues

• Productivity

• Equity

• Dividends

• Opportunity Cost

distribution of a share of the company’s earnings to its shareholders

• Productivity

• Equity

• Dividends

• Opportunity Cost

implied cost of using a resource to produce a product which is equal to the income which could be received if the same resource was used to produce another product

• Productivity

• Equity

• Dividends

• Opportunity Cost