Economic contraction

Encyclopedia : E : EC : ECO : Economic contraction

An economic contraction is a reduction in goods and services for sale in the market place. Typically it relates to a downturn in production caused by external factors such as weather, or by such internal factors as taxes, regulatory constraints or other impacts on producer incentives.

Economic contraction and expansion relate to overall output of all goods and services whilst the terms inflation and deflation relate to the value of money.

From Wikipedia, the Free Encyclopedia. Original article here. Support Wikipedia by contributing or donating.
All text is available under the terms of the GNU Free Documentation License See Wikipedia Copyrights for details.