BAR0803-10 MACRO

Identify and describe the stages of business cycles.

• Peak. This is the point that marks the end of rising aggregate output, and the beginning of a decline in output.
• Trough. The end of the decline in aggregate output and the start of an increase in output.
• Expansion. This occurs when aggregate output is on the increase.
• Contraction or recessionary. The periods during which aggregate output is decreasing.