A contraction is the phase of the business cycle when the economy declines, often with falling real GDP and rising unemployment, moving from peak toward trough (expansion, peak, contraction, trough).

The periodic availability or scarcity of cash, the movement of interest rates from low to high, and the reaction of businesses and consumers to these conditions all play a role in creating the ...

Explore the role of troughs in the business cycle, where economic activity or prices bottom out before recovery, marked by rising GDP, employment, and economic growth.

Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and money-management firms. Photo by Fanatic Studio/Getty Images Economic ...