The business cycle refers to the recurring pattern of expansion and contraction in economic activity.

During an expansion, businesses typically increase their investment in new equipment and facilities.

The trough is the lowest point in a business cycle, where economic activity is at its weakest.

Technological innovations can lead to new products and services, which can stimulate economic growth.

Economic policy refers to the government's overall approach to managing the economy.

Government spending is a tool of fiscal policy that can be used to stimulate or contract the economy.

Monetary policy refers to the central bank's attempt to influence the economy through its control over the money supply.

Interest rates are a tool of monetary policy that can be used to stimulate or contract the economy.

Expansionary fiscal policy involves increasing government spending or cutting taxes to stimulate the economy.

Contractionary fiscal policy involves decreasing government spending or raising taxes to slow down the economy.

During a downturn, businesses typically lay off workers, leading to an increase in unemployment.

The business cycle is the period of time between two consecutive business cycle peaks.

During an upturn, businesses typically increase their investment in new equipment and facilities.

The business cycle is the period of time between two consecutive business cycle troughs.

During a contraction, businesses typically reduce their production, leading to a decrease in output.