Plain-English definitions for the terms you'll encounter on your financial journey.
The natural rise and fall of economic growth over time. It typically consists of four stages: expansion, peak, contraction, and trough.
A phase of the business cycle in which the economy moves from a peak to a trough. It is characterized by falling GDP and rising unemployment.
A phase of the business cycle where the economy moves from a trough to a peak, characterized by an increase in production and employment.
A phase of the business cycle in which the economy moves from a trough to a peak. It is characterized by an increase in production, employment, and income.
The lowest point of the business cycle, marking the end of a recession. It is the transition point before the economy begins to enter a new expansionary phase.