Graph #2
Cycles

-Expansions, peaks, contractions/recessions, troughs = 6 month units or 2 quarters
-Trough to trough is one cycle
-Avg cycle is 6 years
-Recessions last about 14 months
-The bulk of a cycle is the growth stage




-Peaks and Troughs are meaningless because we never know when we are in one until it is over
-If a recession loses more than 10% of real GDP, then it is a depression
-Trough means the end of a recession