Which term refers to a period of sustained decline of output in the economy?
A) expansion
B) peak
C) trough
D) contraction

Question

Which term refers to a period of sustained decline of output in the economy?  
A) expansion 
B) peak 
C) trough 
D) contraction

Quizplus · Accepted Answer

A period of sustained decline of output in the economy is referred to as contraction. A contraction is the opposite of an expansion and is characterized by a decrease in the Gross Domestic Product (GDP). During a contraction, businesses and consumers decrease their spending, leading to a decline in production and employment.

Which Term Refers to a Period of Sustained Decline of Output