GDP and The Business Cycle
Amanda Ellington and Peyton Cook
GDP=Consumption + Government Expenditures + Investment + Exports - Imports
The Business Cycle
Is the expansion, contraction and recovery in the economy. It is measured in GDP and in Unemployment. GDP rises and employment shrinks during the expansion phases while reversing in periods of recession. Where ever one starts in the cycle, the economy is observed to go through 4 periods expansion, peak, contraction, and trough.