CONTRACTION: A phase of the business cycle characterized by a general period of declining economic activity. A contraction is one of two basic business cycle phases. The other is expansion. The transition from contraction to expansion is termed a trough and the transition from expansion to contraction is termed a peak. The popular term for contraction, one that frequent shows up in the media, is recession. Should you check out the entry recession, you will see information that is essentially identical to that presented here, because they are two terms for the same phenomenon.

     See also | business cycle | recession | expansion | peak | trough | recovery | real gross domestic product | unemployment rate | unemployment | full employment | inflation | aggregate expenditures | National Income and Product Accounts | Great Depression |

CONTRACTION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: October 15, 2018].

Additional information on this term can be found at:

WEB*pedia: contraction

Back to the GLOSS*arama

The manufactured, artificial, or synthetic goods used in the production of other goods, making capital the "produced" factor of production. This is one of four basic categories of resources, or factors of production. The other three are labor, land, and entrepreneurship. Capital makes labor more productive.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time at a crowded estate auction trying to buy either a birthday gift for your aunt or a pair of leather sandals that won't cause blisters. Be on the lookout for cardboard boxes.
Your Complete Scope

This isn't me! What am I?

-- John Wayne, actor

User Feedback