Business cycles refer to the recurring pattern of expansion and contraction in economic activity, characterized by periods of growth and decline.

The expansion phase of the business cycle is marked by a steady increase in economic activity, including output, employment, and investment.

The trough of the business cycle represents the lowest point of economic activity, where output, employment, and investment reach their minimum levels.

Monetary policy refers to the actions taken by a central bank to influence the money supply and interest rates in an economy.

Fiscal policy aims to stabilize the economy by influencing government spending and taxation to manage economic fluctuations.

Gross Domestic Product (GDP) is a comprehensive measure of the total value of goods and services produced within a country's borders in a given period.

Inflation refers to the sustained increase in the general price level of goods and services over time, resulting in a decrease in the purchasing power of money.

The unemployment rate is calculated as the percentage of the labor force that is actively seeking work but unable to find employment.

An economic boom is characterized by a period of rapid and sustained economic growth, often accompanied by low unemployment and rising wages.

Keynesian economics emphasizes the role of aggregate demand, or the total demand for goods and services in an economy, in determining economic fluctuations.

An economic recession is a period of economic decline characterized by falling output, employment, and investment, typically lasting for at least two consecutive quarters.

Monetarism emphasizes the role of money supply in determining economic fluctuations, arguing that changes in the money supply can have a significant impact on output, employment, and inflation.

An economic depression is a prolonged period of economic decline characterized by high unemployment, low output, and deflation, typically lasting for several years.

Austrian economics emphasizes the role of individual expectations and entrepreneurship in determining economic fluctuations, arguing that changes in these factors can have a significant impact on economic outcomes.

Economic stagnation refers to a period of economic slowdown characterized by low economic growth and rising unemployment, typically lasting for several years.