A trough in the business cycle occurs when

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A trough in the business cycle refers to the lowest point in employment and output, indicating a period of economic contraction. Cyclical unemployment, which is a result of fluctuations in the business cycle, tends to be higher during troughs. However, the trough itself is not defined by the level of cyclical unemployment. Similarly, while structural and frictional unemployment may also be high during a trough, they do not define the trough itself. The natural rate of unemployment, which is a measure of the "normal" level of unemployment in the economy, may or may not be at a minimum point during a trough. Inflation is typically low during a trough rather than high.

A Trough in the Business Cycle Occurs When