economic cycle

Definition

Predictable long-term pattern changes in national income. Traditional business cycles undergo four stages: expansion, prosperity, contraction, and recession. After a recessionary phase, the expansionary phase can start again. The phases of the business cycle are characterized by changing employment, industrial productivity, and interest rates. Some economists believe that stock price trends precede business cycle stages.

Use economic cycle in a sentence

You should always know where you stand in the economic cycle and be ready to adapt with what is next.

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They were in a downward economic cycle. They knew it would eventually recover, but they just needed to hold on and make smart decisions.

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When the U.S.'s economic cycle idled in the recession phase, lawmakers tried various tactics, such as lowering interest rates, to attempt a resurgence of the U.S. economy.

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