Conclusion

A couple of key things to note:

1. The economy perpetually goes through the stages of the business cycle. A recession will inevitably follow a peak, and an expansion will inevitably follow a trough. However, the duration of each of these phases will vary, as government actions through fiscal and/or monetary policy can influence the effect that they have on the people.
   
2. Because of long-run economic growth (which will be discussed in a later module), the productive capacity of the economy is constantly expanding. This is why the business cycle curve as a whole slopes upward (that is to say, each successive crest and trough is higher than the previous), even though there are upward and downward trends within each cycle.