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Contraction
(redirected from paradoxical contraction)

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia 0.01 sec.
Contraction
In a business cycle, the time between the peak and the bottom. That is, a contraction occurs between the end of economic growth and the end of the subsequent recession. Contractions are characterized by layoffs, a decline in GDP, and other negative factors. However, historically, contractions have tended not to last as long as expansions.


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