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

Question

Quizplus · Accepted Answer

A business cycle trough represents the lowest point in the economic cycle, where economic activity reaches its lowest point with a relatively large negative deviation from trend in real GDP.

A Business Cycle Trough Is a