The phase of the business cycle in which real GDP is at a minimum is called
A) the peak.
B) a recession.
C) the trough.
D) the underside.

Question

Quizplus · Accepted Answer

The trough is the lowest point of the business cycle, which corresponds to the period when the economy is contracting and real GDP is at a minimum. The peak is the highest point of the business cycle, when the economy has reached its maximum growth rate. A recession is a period of economic decline, which can occur during the contraction phase of the business cycle, but is not necessarily the same as the trough. The underside is not a commonly used term in economics.

The Phase of the Business Cycle in Which Real GDP