A business cycle trough is a
A) small positive deviation from trend in real GDP.
B) relatively large positive deviation from trend in real GDP.
C) small negative deviation from trend in real GDP.
D) relatively large negative deviation from trend in real GDP.
E) minimum deviation from trend in real GDP.

Question

Quizplus · Accepted Answer

A business cycle trough is the point in the business cycle where real GDP reaches its lowest point after a period of decline. This represents a relatively large negative deviation from trend in real GDP.

A Business Cycle Trough Is a