The trough of the business cycle:
A) comes right after the expansion phase.
B) comes before the recession phase.
C) is a temporary maximum level of real GDP.
D) is a temporary minimum level of real GDP.

Question

Quizplus · Accepted Answer

The trough of the business cycle is the point where real GDP is at its lowest point, indicating the end of a period of contraction or recession and the start of a period of expansion. Therefore, the correct answer is D, "a temporary minimum level of real GDP."

The Trough of the Business Cycle