Definition of "Business cycle"

Judith Topper real estate agent
Judith Topper, Real Estate Agent Charles Rutenberg Realty

Regular pattern of expansion (recovery) and contraction (recession) in total economic activity surrounding a growth trend, including the impact of economic variables such as employment and inflation. At the peak of the cycle, economic activity is high compared to trend, but at the trough (valley) of the cycle, the low point in economic activity is reached. The business cycle influences corporate earnings, cash flow, and expansion.

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