The economic cycle refers to the ongoing process of fluctuations in economic activity between periods of expansion and contraction. It includes four main phases:
Recession - A period of declining economic activity, usually defined as at least two consecutive quarters of declining GDP. In a recession, businesses produce less, fewer goods and services are demanded from consumers and businesses, and unemployment rises.
Recovery - The beginning of an upswing following a recession. GDP starts growing again on a quarterly basis, although the pace of growth is usually slow in early recovery. Unemployment declines from its peak.
Prosperity - A period of strong economic growth and low unemployment. GDP growth is robust and businesses are producing at or near full capacity to meet strong