ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The highest point of the economy, before the recession begins, is called the peak; conversely, the lowest point of a recession, before a recovery begins, is called the trough.

Detailed explanation-2: -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-3: -Recent Recessions The investment advisor argues that the economy met the technical definition of recession after two consecutive quarters of negative growth, but numerous other positive economic indicators show the economy is not in recession.

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 trough is the bottom of the recession period, unemployment is at its highest, inflation is low. 4. expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.