The Business Cycle, or also known as the Economic Cycle, shows how the economy acts over time. Below is a picture of the cycle. This cycle is ideal, but does not occur perfectly in the real world.
It is a law of nature that the economy has to crappy sometimes. When the economy is in recession, many unneeded businesses are destroyed to make room for companies that are more fit to prosper. The trough is when the economy stops sucking and then starts to rise. During the recovery, the economy expands to allow a higher influx of money to flow through. At the peak, the economy stops growing and starts to suck again. Over a period of time, multiple cycles make the economy grow in size.
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