Business cycles are generally measured using the rise and fall in the real gross domestic product GDP or the GDP adjusted for inflation. The business cycle is also known as the economic cycle or trade cycle. Actual fluctuations in real GDP , however, are far from consistent. These fluctuations include output from all sectors including households, nonprofits, governments, as well as business output. [PUNIQGOOGLESNIPMIX-1
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The chronology comprises alternating dates of peaks and troughs in economic activity. A recession is a period between a peak and a trough, and an expansion is a period between a trough and a peak. During a recession, a significant decline in economic activity spreads across the economy and can last from a few months to more than a year. Similarly, during an expansion, economic activity rises substantially, spreads across the economy, and usually lasts for several years. In both recessions and expansions, brief reversals in economic activity may occur-a recession may include a short period of expansion followed by further decline; an expansion may include a short period of contraction followed by further growth.
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