Asked by Araceli ArredondoLona on Jun 03, 2024
Verified
A trough is
A) a transition from an expansion in the business cycle to the start of a contraction.
B) a transition from a contraction in the business cycle to the start of an expansion.
C) a depression that lasts more than three years.
D) only something used by farmers to feed pigs and not an investment term.
Trough
The transition point between recession and recovery.
Business Cycle
The economic cycle that involves periods of economic expansion, peak, contraction, and trough.
Contraction
A period of economic decline marked by falling GDP, reduced consumer spending, and increased unemployment.
- Scrutinize the different phases of the business cycle and their significance for economic outcomes.
Verified Answer
RH
Rechel HelenaJun 06, 2024
Final Answer :
B
Explanation :
A trough in the context of economics refers to the point at which an economy transitions from a period of contraction, or downturn, to the start of an expansion or recovery phase in the business cycle. This is the lowest point of the cycle before economic activity begins to increase again.
Learning Objectives
- Scrutinize the different phases of the business cycle and their significance for economic outcomes.