Statement I: The recovery phase of the cycle always follows the recessionary phase.
Statement II: The trough is the low point of the business cycle.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Recovery Phase

A stage in the economic cycle where activity starts to increase again after a downturn, leading to improvements in employment, consumer confidence, and spending.

Recessionary Phase

A period in the business cycle where the economy is contracting, leading to reduced economic activity and increased unemployment.