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GDP ↔ business cycle

Relations (1)

related 2.58 — strongly supporting 5 facts

GDP is a primary metric used to define the various phases of the business cycle, as its rate of increase fluctuates during 'Boom' [1], 'Expansion' [2], 'Recession' [3], and 'Depression' [4] stages, as further summarized in [5].

Facts (5)

Sources
Systemic or “Macro” Factors that Affect Financial Thinking nicoletcollege.pressbooks.pub Nicolet College 4 facts
imageDuring a 'Recession' phase of the business cycle, the rate of GDP increase is negative and the rate of unemployment is higher.
imageDuring a 'Boom' phase of the business cycle, the rate of GDP increase is unsustainably high and the rate of unemployment is unsustainably low.
imageDuring an 'Expansion' phase of the business cycle, the rate of GDP increase is positive and the rate of unemployment is at a 'natural' or minimal level.
imageDuring a 'Depression' phase of the business cycle, the rate of GDP increase is unsustainably low and the rate of unemployment is unsustainably high.
1.3: Systemic or "Macro" Factors That Affect Financial Thinking biz.libretexts.org LibreTexts 1 fact
measurementDuring a 'Boom' stage of the business cycle, the rate of GDP increase is unsustainably high and the rate of unemployment is unsustainably low. During an 'Expansion' stage, the rate of GDP increase is positive and the rate of unemployment is 'natural' or minimal. During a 'Recession' stage, the rate of GDP increase is negative and the rate of unemployment is higher. During a 'Depression' stage, the rate of GDP increase is unsustainably low and the rate of unemployment is unsustainably high.