What are the characteristics of economic decline?

And the decline must be characterized, at least to some degree, by each of the following characteristics: depth, diffusion, and duration. 3 Thus, emphasis is placed on a variety of measures of economic activity rather than on a single measure, such as GDP growth.

What is a business cycle in economics?

Business cycle: The fluctuating levels of economic activity in an economy over a period of time measured from the beginning of one recession to the beginning of the next. Contraction: A period when real GDP declines; a period of economic decline. Expansion: A period when real GDP increases; a period of economic growth.

What is a downward slope in a business cycle?

In economic terms, each one reaches a peak, which, like a roller coaster ride, is the point just before the downward movement begins. 3. The downward slope of the business cycle is called economic contraction. This is a period when economic output declines; it's measured as a decrease in real GDP.