Economic business cycle

Stages overview

• Decreasing inflation • Stabilized inflation • Increasing inflation • Increasing inflation • Peaking inflation
• Large output gap • Small output gap • Zero output gap • Small output gap • Large output gap
• Decreasing ST rates • Increasing ST rates • Increasing ST rates • Peaking ST rates • Decreasing ST rates
• Increasing stocks • Increasing stocks • Peaking stocks • Decreasing stocks • Recovering stocks

Expansionary Less expansionary Restrictive Less restrictive Expansionary

Initial Recovery Early upswing Late upswing Slowdown Recession