What are economic fluctuations?

Economic fluctuations refer to the variations in economic activity over time, typically measured by changes in real GDP, employment rates, and consumer spending. These fluctuations can manifest as periods of expansion, where the economy grows, and contraction, where the economy shrinks, often influenced by factors such as consumer confidence, government policy, and external shocks. They are a natural part of the business cycle and can result in booms and recessions, impacting overall economic stability and individual livelihoods.