A trough is
A) a transition from an expansion in the business cycle to the start of a contraction.
B) a transition from a contraction in the business cycle to the start of an expansion.
C) a depression that lasts more than three years.
D) only something used by farmers to feed pigs and not an investment term.

Question

Quizplus · Accepted Answer

A trough in the context of economics refers to the point at which an economy transitions from a period of contraction, or downturn, to the start of an expansion or recovery phase in the business cycle. This is the lowest point of the cycle before economic activity begins to increase again.

A Trough Is