ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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brand new product
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broken product
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expensive product
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severely outdated product
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Detailed explanation-1: -Which of the following is a cause of a trough? A severely outdated product.
Detailed explanation-2: -Examples of Troughs in the U.S. An economic trough occurred in June 2009. This date marked the official end of the Great Recession, which began following the economic peak reached in Dec. 2007. At the end of 2007, the U.S. GDP reached an all-time high of $14.99 trillion.
Detailed explanation-3: -A trough in the business cycle marks the low point in the economic cycle. It follows a period of decline after the economy hits peak productivity. Employment and output will fall for a time, and the government often steps in to stimulate a recovery.
Detailed explanation-4: -Troughs are a regular part of the business cycle. As an economy expands and its GDP grows, it will eventually reach a peak. The economy will then begin to contract as it slides down the backside of the peak and goes into recession. From there, the economy will hit a trough-its lowest point in the cycle.