the business cycle

• recession where real GDP decreases for at least two successive quarters
• Volatility can arise from extreme events such as covid-19 or sometimes can be explained by deliberate actions of government or central banks such as a rise in government spending or a reduction in interest rates. Some economists see the problem as rooted in aggregate demand or supply
• Actual growth rate is the percentage annual increase in the output that is actually produced whereas potential growth is the percentage annual increase in the economy can be produced
• Countries business cycles have both national and international components, the international has tended to increase over time as countries become interconnected