Mr. Herndon noted the work of the 20th-century Polish economist Michal Kalecki, who argued that business leaders feel “undermined” by the maintenance of full employment.

A business cycle or economic cycle comprises the fluctuations in economic activity. According to the Corporate Finance Institute, a business cycle showcases the upswings and downswings in the ...

Full employment in an economy is when all available workers who ... Cyclical unemployment is the fluctuating type of unemployment that rises and falls within the normal course of the business cycle.

Understanding the economy requires recognizing the predictable sequence of the Business Cycle, which is critical for long-term investment strategies. Read the full article here.

Employment levels also offer an indicator of where the economy stands in the business cycle. Unemployment levels of less than 5% are consistent with full employment and are indicative of economic ...

Have we finally mastered the business cycle? On and off since the 1960s, some economists have nourished that notion. ... Indeed, we’re not even sure what constitutes “full employment.” ...

3. Contraction. After the peak, a decline follows. When an economy is in the contraction stage of the economic cycle, growth slows. A period of contraction in economic activity, if severe enough ...

Economic performance tends to fluctuate over time. When an economy is growing, we say it is expanding. When it is declining, we say that an economy is contracting. An extended period of economic ...