ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Be worried about losing their jobs and are avoiding spending money
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Be booking their next overseas holiday
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Be buying a new car
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Be buying a bigger house
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Detailed explanation-1: -A trough is marked by conditions like higher unemployment, layoffs, declining business sales and earnings, and lower credit availability. After the trough, recovery and expansion begin.
Detailed explanation-2: -The trough is the bottom of the recession period, unemployment is at its highest, inflation is low.
Detailed explanation-3: -A trough in the business cycle is the bottom point of an economic cycle. It is often, but not necessarily, marked by two quarters of negative GDP growth. Employment and output will fall during a recessionary trough. Stocks of companies selling necessities and lower-priced items will generally outperform.
Detailed explanation-4: -Recovery. After the trough, the economy moves to the stage of recovery. In this phase, there is a turnaround in the economy, and it begins to recover from the negative growth rate. Demand starts to pick up due to low prices and, consequently, supply begins to increase.