Which term describes a short period of economic decline within the business cycle?

The term that describes a short period of economic decline within the business cycle is "Recession." In economic terms, a recession is typically defined as a significant decline in economic activity across the economy that lasts for a few months. During a recession, key indicators like GDP, employment, and consumer spending generally decrease, leading to a slowdown in economic growth. This phase of the business cycle is characterized by reductions in income and employment which can impact consumer confidence and spending.

In contrast, a depression refers to a prolonged and more severe downturn that lasts for several years, marking a more extensive and detrimental impact on the economy compared to a recession. Growth refers to an increase in economic activity and is the opposite of a decline, while stagnation reflects a period where there is little or no growth, rather than a decline. Therefore, "Recession" accurately captures the concept of a short-term economic decline within the overall business cycle.