Economists have identified several consecutive quarters of falling employment, and forecasts for the next few months suggest more of the same. The economy is at the _____ stage of the business cycle.
A) recession
B) expansion
C) peak
D) trough

Question

Quizplus · Accepted Answer

A recession is defined by two consecutive quarters of declining GDP and employment, which is what is described in the scenario. A trough is the lowest point in the business cycle, and a peak is the highest point. Expansion is a period of economic growth, which is not consistent with the scenario.

Economists Have Identified Several Consecutive Quarters of Falling Employment, and Forecasts