Definition of "Business cycle"

Ruth Truesdell real estate agent
Ruth Truesdell, Real Estate Agent Acres Away Realty, Inc.

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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