The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
A) recessionary phase.
B) recovery phase.
C) contractionary phase.
D) cyclical phase.

Question

Quizplus · Accepted Answer

The period of growth in real GDP between the trough of the business cycle (when the economy hits its lowest point and is in a recession) and the next peak (when the economy reaches its highest point before beginning to decline again) is called the recovery phase. This is when the economy starts to pick up and improve from the previous recession. Choice A is incorrect because the recessionary phase refers to the period of declining real GDP before the trough. Choice C is incorrect because the contractionary phase is a broader term that includes both the recessionary and recovery phases. Choice D is also incorrect because cyclical phase is not a commonly used term in economics.

The Period of Growth in Real GDP Between the Trough