|Title||What do economy and business cycle mean?|
Economy generally refers to the level of overall activities within national economy. It represents macroeconomic flow of actual activities such as production, consumption, investment and employment, financial activities such as demand and supply of currency, and interest rates, and external activities such as imports and exports.
Business cycle refers to phenomenon in which the overall economic activities repeat rises and falls around long-term economic growth trend.
Economic activities expand between trough and peak, but slow down from the peak to the trough. These patterns can repeat but are not periodic.