A contraction is the phase of the business cycle when the economy declines, often with falling real GDP and rising unemployment, moving from peak toward trough (expansion, peak, contraction, trough).

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Mixed economies blend free market and socialist elements, balancing efficiency and social welfare. Advantages include efficient resource allocation and innovation-driven profit, as seen with Apple.

Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and money-management firms. Photo by Fanatic Studio/Getty Images Economic ...