Econ Notes: Business Cycle

- An avg business cycle is from trough to trough
- The average cycle is 6 years
- Recessions last about 14 months. The bulk of a cycle is the growth stage.
- Peak to trough are meaningless because we never know we are in one until its over.
- If a recession loses more than 10% of real GDP that is is a depression.
- Trough means end of recession

E = Expansion
P = Peak
C/R= Contraction/Recession
T= Trough