Business cycles are a type of fluctuation found in the overall economic activity of a nation, a cycle consisting of expansions occurring at about the same time in many economic activities, followed by similar general contractions ( recessions). This sequence of changes is recurrent but not periodic.
Understanding the Business Cycle
Essentially, business cycles are marked by the alternation of phases of expansion and contraction in overall economic activity, and the co-movement between economic variables in each phase of the cycle.
Overall economic activity is represented not only by real (i.e. inflation-adjusted) GDP, a measure of aggregate output, but also by aggregate measures of industrial production, employment , revenue and sales, which are the coincident economic indicators. for the official determination of the high and low dates of the American economic cycle.
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