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

Question

Quizplus · Accepted Answer

A business cycle trough is the lowest point of a business cycle, representing the end of a period of economic contraction and the beginning of a period of economic expansion. It is characterized by a relatively large negative deviation from trend in real GDP, indicating that the economy has hit rock bottom and is starting to recover.

A Business Cycle Trough Is a