ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A significant decline in national output is called a recession; an especially lengthy and deep decline in output is called a depression. The highest point of output before a recession begins is called the peak; the lowest point of output during the recession is called the trough.

Detailed explanation-2: -A recession is the period between a peak of economic activity and its subsequent trough, or lowest point. Between trough and peak, the economy is in an expansion.

Detailed explanation-3: -A trough in the business cycle occurs when a recession ends and economic recovery or expansion begins. A recession’s depth is determined by the magnitude of the peak-to-trough decline in the broad measures of output, employment, income, and sales.

Detailed explanation-4: -A trough in the business cycle is a period of negative gross domestic product (GDP) that forms the lowest point in an economic cycle. It indicates that a recession is underway.

Detailed explanation-5: -The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.