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The business cycle explained! What happens during a recession? Well we have to look at what happens during the business cycle. Phases of the business cycle: 1. Trough - this is a turning point upwards 2. Expansion - where the economy is growing 3. Peak - this is a turning point downwards 4. Contraction - where the economy is slowing, often leads to a recession. (Like very often) What is a recession anyways? Well, it’s a period of contraction as defined by the NBER. GDP slows, products and servic
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