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Economic contraction |
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Economic contractionThe downward phase of the business cycle, in which GDP is falling and unemployment is rising over time.Similar MatchesContractionaryContractionaryTending to cause aggregate output (GDP) and/or the price level to fall. Term is typically applied to monetary policy (a decrease in the money supply or an increase in interest rates) and to fiscal policy (a decrease in government spending or a tax increase), but may also apply to other macroeconomic shocks. Contrasts expansionary. ContractionContractionEconomic contraction |
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