What do you mean by contraction in economic cycle?

Business & Management
#1

In this period the economic shows signs of slowing down. The employer’s cut the work of the employees so that money can’t be spend away. As the economy begins to contract, business begins to slow down for Normal Maintenance. They find that they are caught up on work and they aren’t getting so many phone calls. The owner is able to reduce his labor costs by cutting back on overtime and eliminate working on the weekends.