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BUSINESS CYCLES: The recurring expansions and contractions of the national economy (usually measured by real gross domestic product). A complete cycle typically lasts from three to five years, but could last ten years or more. It is divided into four phases -- expansion, peak, contraction, and trough. Unemployment inevitably rises during contractions and inflation tends to worsen during expansions. To avoid the inflation and unemployment problems of business cycles, the federal government frequently undertakes various fiscal and monetary policies.

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ECONOMY

The system of production, distribution, and consumption of goods and services that a society uses to address the problem of scarcity.

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Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either an ink cartridge for your printer or a rechargeable battery for your camera. Be on the lookout for cardboard boxes.
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The earliest known use of paper currency was about 1270 in China during the rule of Kubla Khan.
"Most human beings have an almost infinite capacity for taking things for granted. "

-- Aldous Huxley, writer

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