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 the opposite occurs - unemployment rises, wages fall, businesses cut back and lay people off. The economy fluctuates between these phases in a regular cycle. Understanding where the economy is in the cycle can help individuals and businesses plan financially.