Dr. Mohammed Alwosabi Econ 141- Ch.22
is a period in which is a significant decrease inRGDP of the country that occurs for at least two quarters.
A recession begins just after the economy reaches its peak ofactivity and ends as the economy reaches its trough.
which there is a significant increase inRGDP lasting for at least two quarters.
During expansion, productionof goods and services increasesand unemployment decreases.
An expansion begins just afterthe economy reaches its troughof activity and ends as theeconomy reaches its peak.
is the point at which the real GDP stops increasing (anexpansion ends) and begins its decline (a recession begins). Itis the highest point.
At the peak, employment, consumer spending, and productionhit their highest levels.
When the peak lasts for a long time, we are in a period of
. One of the dangers of peak periods is that ofinflation.