Stages of the Business Cycle


Defining Recession and Recovery



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BISNESS CYCLE

Defining Recession and Recovery

Layoffs and a stall in new hiring characterize a recession. This reduction in employment represents both the result and the cause of decreases in production because of lower demand in the market. This stage in particular has a cyclical, self-perpetuating tendency that becomes difficult to break out of. Recovery follows recession as the period of time where the economy experiences renewed growth. During recovery, demand and production increase, in turn raising levels of hiring and job creation.


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