A trough in the business cycle occurs when:

Question

Quizplus · Accepted Answer

A trough in the business cycle represents the low point of the cycle, where output and employment reach their lowest levels before beginning to recover. Cyclical unemployment tends to be highest at this point in the cycle, as businesses are reducing employment levels due to lower demand for goods and services. The natural rate of unemployment may not necessarily be at its lowest point during a trough in the business cycle, and the inflation rate may be low or high depending on various factors.

A Trough in the Business Cycle Occurs When