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: -The lowest point of real GDP reached during the business cycle is known as the trough. Troughs can be for varying amounts of time.

Detailed explanation-3: -In the depression stage, the economy’s growth rate becomes negative. There is further decline until the prices of factors, as well as the demand and supply of goods and services, contract to reach their lowest point. The economy eventually reaches the trough.

Detailed explanation-4: -The trough is the lowest point in an economic contraction, when real GDP stops falling. When an economy is expanding or growing, many people have jobs and many goods and services are being produced and sold.