Economic fluctuations refer to the ups and downs in economic activity over time, often measured by changes in Gross Domestic Product (GDP). These fluctuations can result in periods of growth, known as expansions, and periods of decline, known as recessions. Various factors, such as changes in consumer demand, government policies, and global events, can influence these cycles. During expansions, businesses typically invest more, leading to job creation and increased consumer spending. Conversely, during recessions, economic activity slows, resulting in higher unemployment and reduced spending. Understanding these fluctuations helps policymakers and businesses make informed decisions to stabilize the economy.