Business Cycle
The business cycle describes regular patterns of economic expansion (boom), peak, contraction (recession), and trough. Phases repeat though irregular in timing and amplitude.
Real World
The UK experienced a classic business cycle between 2003 and 2013: a credit-fuelled boom peaking in 2007, a deep recession in 2008–09 triggered by the global financial crisis, and a slow recovery from 2010 onward.
Exam Focus
Label all four phases (boom, peak, contraction, trough) on diagrams and link each phase to specific indicators like unemployment and inflation.
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