A period of sustained decline of output in the economy is known as a(n)
A)expansion
B)growth phase
C)peak
D)trough
E)contraction

Question

Quizplus · Accepted Answer

A period of sustained decline of output in the economy is known as a contraction. Option E is the only one that describes a period of decline. Expansion and growth phase refer to an increase in output, peak is the highest point of the business cycle, and trough refers to the lowest point of the cycle, which marks the end of the contraction phase.

A Period of Sustained Decline of Output in the Economy