Contraction

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Dictionary Says

Definition of 'Contraction'

A phase of the business cycle in which the economy as a whole is in decline. More specifically, contraction occurs after the business cycle peaks, but before it becomes a trough. According to most economists, a contraction is said to occur when a country's real GDP has declined for two or more consecutive quarters.  
Investopedia Says

Investopedia explains 'Contraction'

For most people, a contraction in the economy can be source of economic hardship; as the economy plunges into a contraction, people start losing their jobs. While no economic contraction lasts forever, it is very difficult to assess just how long a downtrend will continue before it reverses because history has shown that a contraction can last for many years (such as during the Great Depression).
Search results for

'Contraction'

  • Eurozone Recession?

    http://stocks.investopedia.com/stock-analysis/2012/Eurozone-Recession-DRYS-NXPI-TRNX-VPRT0223.aspx
    ... Data compiler Markit's composite Euro Zone Purchasing Managers' Index (PMI) fell
    to 49.7 from last month's 50.4, signaling contraction for both services and ...

  • The Lost Decade: Lessons From Japan's Real Estate Crisis

    http://www.investopedia.com/articles/economics/08/japan-1990s-credit-crunch-liquidity-trap.asp
    ... Economic cycles consist of fluctuating periods of economic expansion and contraction
    as measured by a nation's gross domestic product (GDP). ...

  • Series 65 Study Guide - Basic Economic Concepts - Business Cycle ...

    http://www.investopedia.com/exam-guide/series-65/economic-concepts/business-cycle.asp
    ... The term recession may refer to the contraction stage in the business cycle, but
    it also refers to a prolonged drop in GDP that lasts at least two quarters. ...

  • Trading GDP Like A Currency Trader

    http://www.investopedia.com/articles/forex/11/trading-gdp-like-a-currency-trader.asp
    ... States' total gross domestic product – which can be compared to another year's
    performance, in order to derive a percentage of growth or contraction in a ...

  • A Review Of Past Recessions

    http://www.investopedia.com/articles/economics/08/past-recessions.asp
    ... (For another perspective on credit crisis, see The Bright Side of The Credit Crisis.)
    Contraction and expansion cycles of moderate amplitude are part of the ...

  • Series 7 Study Guide - Securities Markets - The Business Cycle ...

    http://www.investopedia.com/exam-guide/series-7/securities-markets/the-business-cycle.asp
    ... Contraction (Recession, Depression): Economic growth slows or the economy actually
    shrinks; sales decline and unemployment rises. This phase follows the peak. ...

  • Top 4 Things To Know About The Last Double-Dip Recession ...

    http://financialedge.investopedia.com/financial-edge/0911/Top-4-Things-To-Know-About-The-Last-Double-Dip-Recession.aspx
    ... This brief six-month economic contraction was the shortest downturn since recordkeeping
    started in the 1850s, according to the National Bureau of Economic ...

  • Macroeconomics: The Business Cycle | Investopedia

    http://www.investopedia.com/university/macroeconomics/macroeconomics7.asp
    ... By Stephen Simpson The business cycle is the pattern of expansion, contraction
    and recovery in the economy. Generally speaking, the ...

  • Restaurant Industry Sending Mixed Signals

    http://stocks.investopedia.com/stock-analysis/2009/Restaurant-Industry-Sending-Mixed-Signals-DRI-EAT-RT1006.aspx
    ... The most recent report on conditions in the restaurant industry shows that the nearly
    two-year-old contraction in activity is continuing, coupled with greater ...

  • Translating "Fed Speak" Into Plain English

    http://www.investopedia.com/articles/economics/08/translating-fed-speak.asp
    ... If the Fed indicates a contraction in the monetary policy, which means it is trying
    to get the economy to slow down, it is a negative sign for future equity ...

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