CH 6.2

CH 6.2 - M acroeonomics CH 6.2 Figure TheBusinessCycle 6.2

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Macroeonomics CH 6.2 Figure       6.2        The Business Cycle This is a stylized picture of the business cycle. The vertical axis measures either employment or total output in the  economy. Periods when these two variables turn down are  recessions;  periods when they turn up  are  expansions.  The point at which the economy turns down is a  business-cycle peak;  the point at which it turns up  again is a business-cycle trough. A broad-based downturn, in which output and employment fall in many industries, is called  recession  (sometimes referred to as a  contraction ).Recessions, as officially declared by the  National Bureau of Economic Research (see the upcoming For Inquiring Minds), are indicated by the  shaded areas in  Figure 6.1 . When the economy isn’t in a recession, when most economic numbers  are following their normal upward trend, the economy is said to be in an 
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CH 6.2 - M acroeonomics CH 6.2 Figure TheBusinessCycle 6.2

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