ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Peak
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Recession/Contraction
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Depression/Trough
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Expansion/Recovery
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Detailed explanation-1: -A trough in the business cycle marks the low point in the economic cycle. It follows a period of decline after the economy hits peak productivity. Employment and output will fall for a time, and the government often steps in to stimulate a recovery.
Detailed explanation-2: -An economic cycle is the overall state of the economy as it goes through four stages in a cyclical pattern: expansion, peak, contraction, and trough. Factors such as GDP, interest rates, total employment, and consumer spending can help determine the current stage of the economic cycle.
Detailed explanation-3: -Illustrations of U.S Economic Troughs Before the Great Recession started, the US GDP reached its peak volume at $14.99 trillion its highest in history and then started declining steadily, till it bottomed out at $14.36 trillion in June 2007.
Detailed explanation-4: -Generally, a trade cycle is composed of four phases – depression, recovery, prosperity and recession.