Question

Multiple Choice:

The trough of the business cycle:

A) comes right after the expansion phase

B) comes before the recession phase

C) is a temporary maximum level of real GDP

D) is a temporary minimum level of real GDP

Answer 1

An Answer is an option (D).

Explanation:- The business cycle is the medium-term fluctuation of the economy between periods of expansion and contraction.

  The term business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. These fluctuations occur around a long-term growth trend, and they typically involve shifts over time between periods of relatively rapid economic growth (an expansion or boom) and periods of relative stagnation or decline (a contraction or recession ).