BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A trough is the stage of the economy’s business cycle that marks the end of a period of declining business activity and the transition to expansion. The business cycle is the upward and downward movement of gross domestic product and consists of recessions and expansions that end in peaks and troughs.

Detailed explanation-2: -Peak: A peak occurs when the real GDP reaches its maximum, stops rising, and begins to decline. It is determined after the fact. Trough: A trough occurs when the real GDP reaches its minimum, stops declining, and begins to rise.

Detailed explanation-3: -What Are the Stages of an Economic Cycle? An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.

Detailed explanation-4: -A peak is the highest point of a business cycle and is followed by a contraction and eventual trough. Peaks are called after the fact once economic indicators have confirmed that contraction has set in and isn’t simply noise. Peak to peak business cycles have been lasting longer on average for the U.S. economy.