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In general, the business cycle is said to go through expansion, then the peak, followed by contraction, and then it finally bottoms out with the trough.
broader definition and considers a number of measures of activity to decide the dates of recessions. The NBERâs Business Cycle Dating Committee defines a recession as âa significant decline in economic activity spread across the economy, last-ing more than a few months, normally visible in production, employment, real income, and other indicators. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough.â