A period of sustained decline in output in an economy is known as a(n)_____.
A)expansion
B)stagnation
C)peak
D)trough
E)contraction

Question

Quizplus · Accepted Answer

A period of sustained decline in output in an economy is known as a contraction. The other options refer to different stages of the business cycle: expansion is when output and employment increase, stagnation is a prolonged period of little or no growth, peak is the highest point of the cycle before a contraction, and trough is the lowest point of the cycle before an expansion.

A Period of Sustained Decline in Output in an Economy