Expansionary: Real output in the economy is increasing and the unemplyment rate is declining. (growth) EX: construction.
Peak: Real output is at its highest point.
Contractionary (Recession): real output in economy is decreasing and the unemployment rate is rising.
Trough: This is where you reach tour lowest point of GDP.
*One cycle is from T to T. (T = trough)
*Recession lasts about 14 months.
*The bulk of the cycle is the growth stage
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