The period of declining growth in real GDP, between the peak of the business cycle and the trough, is called the:
A)contractionary phase.
B)boom.
C)expansionary phase.
D)static phase.

Question

The period of declining growth in real GDP, between the peak of the business cycle and the trough, is called the:
A)​contractionary phase.
B)​boom.
C)​expansionary phase.
D)​static phase.

Quizplus · Accepted Answer

The period of declining growth in real GDP is commonly referred to as a contractionary phase or contraction, as it represents a decline in economic activity or a downturn in the business cycle. The peak is the end of the expansionary phase, and the trough is the end of the contractionary phase, after which the economy generally begins to recover and enter another expansionary phase.

The Period of Declining Growth in Real GDP, Between the Peak