Now figure this, since 1992, the end of the graph, our production has risen every year. That puts us smack in the middle of the longest period of sustained economic growth in our nations history. Its now 9 years and shows no immediate signs of slowing down. The business cycle may be defined as the changes that occur to the real GDP because of alternating periods of expansion and contraction. A decline in the real GDP that occurs for at least two or more quarters.
Recessions feed on themselves.
During a recession, business people spend less than they once did. Because sales are failing, businesses do what they can to reduce their spending. They lay off workers, buy less merchandise, and postpone plans to expand. When this happens, business suppliers do what they can to protect themselves. They too lay off workers and reduce spending.