ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A trough in the business cycle is the bottom point of an economic cycle. It is often, but not necessarily, marked by two quarters of negative GDP growth. Employment and output will fall during a recessionary trough.

Detailed explanation-2: -The lowest point on the business cycle is a trough, which is characterized by higher unemployment, lower availability of credit, and falling prices.

Detailed explanation-3: -A trough is the stage of the economy’s business cycle that marks the end of a period of declining business activity and the transition to expansion. The business cycle is the upward and downward movement of gross domestic product and consists of recessions and expansions that end in peaks and troughs.

Detailed explanation-4: -A peak is the highest point of a business cycle and is followed by a contraction and eventual trough. Peaks are called after the fact once economic indicators have confirmed that contraction has set in and isn’t simply noise. Peak to peak business cycles have been lasting longer on average for the U.S. economy.

Detailed explanation-5: -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. Thus, a recession lasts from peak to trough, and an economic upswing runs from trough to peak.