Economy experiences rapid growth. Indicators: Low interest rates, high production, moderate inflation. High demand for goods and services leads to increased production and employment. Increased investments and infrastructure spending. Steady GDP growth.
Economy reaches a growth limit. Signs of slowdown in various indicators. Difficulty in attracting fresh investments. High price levels reduce consumer spending on luxury items.
Economy enters a contraction phase. High prices reduce demand for goods and services. High supply, low demand lead to unsold goods. Production slowdown, increased layoffs, and rising unemployment rates. Decreased GDP growth.
Follows a prolonged contraction phase. Economy hits its lowest point. Minimal demand and supply of goods. Consumers focus on essential needs, conserving money.