When aggregate economic activity is declining,the economy is said to be in
A)a contraction.
B)an expansion.
C)a trough.
D)a turning point.

Question

Quizplus · Accepted Answer

A contraction is a period of declining economic activity, characterized by decreasing production, consumption, investment, and employment. It is the opposite of an expansion, which is a period of increasing economic activity. A trough is the lowest point of a contraction, while a turning point refers to any shift in the economic trajectory, whether it is from contraction to expansion or vice versa.

When Aggregate Economic Activity Is Declining,the Economy Is Said to Be