ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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high unemployment, high inflation
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high unemployment, low inflation
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low unemployment, high inflation
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low unemployment, low inflation
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Detailed explanation-1: -A recession is a decline in total output, unemployment rises and inflation falls. 3. The trough is the bottom of the recession period, unemployment is at its highest, inflation is low.
Detailed explanation-2: -The term ‘stagflation’ is used in economics to describe a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high.
Detailed explanation-3: -Troughs are as a result of declining employment rate, high unemployment, low GDP, low wages and other indicators. They also differ in nature, as some are just minor economic recessions, while others are as a result of recurrent contractions, or steady decline of an economic state.
Detailed explanation-4: -A trough, in economic terms, can refer to a stage in the business cycle where activity is bottoming, or where prices are bottoming, before a rise.
Detailed explanation-5: -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.