Business Cycle

Recession

A period of declining national economic activity, usually measured as a decrease in GDP for at least two consecutive quarters.

Expansion

A period of economic growth.

Contraction

A period of general economic decline marked by falling GDP and rising unemployment.

Depression

A prolonged economic downturn characterized by plunging real GDP and extremely high unemployment.

Business Cycle

A recurring pattern of growth and decline in economic activity over time.

Coincident Indicators

Economic measures that consistently rise and fall along with expansions and contractions.

Lagging Indicators

Economic measures that consistently rise and fall several months after an expansion or contraction.

Leading Indicators

Economic measures that consistently rise or fall several months before an expansion or contraction begins.

Peak

The highest point of an expansion, or period of economic growth; a peak is followed by an economic decline.

Trough

The lowest point of a contraction, or period of economic decline; a trough is followed by economic growth.