Book Picks Economics in One Lesson by Henry Hazlitt. 0870341316 Click here to see entire catalog. These usually last from six months to a year, and are marked by widespread contractions in many sectors of the economy.
Recessions start at the peak of a business cycle and end at the trough.
Recoveries are transitional phases starting from the economy's low point, or trough, until the economy recaptures its lost output and returns to its previous peak. Generally, growth is strongest during the recovery phase, but shorter in duration than the previous recession which it follows. Expansions are phases beginning when the economy expands beyond its prior cyclical high. In the 1990's, the ability to implement this counter-cyclical policy was severely weakened by large federal budget deficits, which may shorten future expansions. Fundamental Analysis is a method to forecast price movements by looking at economic indicators and government policy within a business cycle framework.