Number: RL34072
Title: Economic Growth and the Business Cycle: Characteristics, Causes, and Policy Implications
Authors: Marc Labonte, Government and Finance Division 
Abstract: Economic growth (increases in gross domestic product (GDP)) may appear to be unambiguously good because income can only rise over time if output rises. But quarterly GDP growth can be affected by four different factors, and each of these factors has different implications for policy and for general well-being. Figure 1 illustrates these factors graphically over the past two business cycles.
Pages: 22
Date: July 5, 2007