The document discusses the business cycle and how it affects the overall economy. It explains that the business cycle consists of periods of expansion and contraction that cause the economy and GDP to regularly grow and shrink. During expansions, the economy and GDP grow as unemployment decreases, wages rise, businesses profit and invest more. Eventually expansions peak and turn to contractions, where businesses cut back and lay people off, unemployment rises, and GDP declines. The economy bottoms out at the trough before beginning another expansion. Understanding where the economy is in the business cycle can help individuals and businesses plan accordingly.