Competition - this is necessary for a successful market economy. Buyers and sellers interact to determine what is produced, how and by whom. If a product is desired, someone will make it. If the products satisfy the consumer, the business will thrive. Contraction - the economy slows down.
People spend less and companies cut back on the production of products.
Trough - the low point of a contraction. Mild depressions indicate a recession, while severe contractions indicate a depression . There could be widespread unemployment and poverty. Expansion - a turnaround of the economy. Demand for products and services begins to rise.