What on Earth is Economic Cycling?

Every economy goes through a specific set of stages. This is absolutely normal. But what are those stages?

On a graph of real GDP to Time, there is a trend growth line and an actual growth line. Actual growth is never a smooth line. It fluctuates. The trend growth can be a straight line. When growth hits a peak we call this a boom a d when the growth is falling we call this a recession. The lowest point is known as a trough and when the trend starts to fall back into place we call this a recovery.

Shocks happen in the economy and therefore the trend always fluctuates. E.g an increase in interest rates, a cut in government spending, or a sudden housing market crash, or a financial market crash.