The phase of the business cycle where real GDP, or output, is contracting is the:
A) peak.
B) trough.
C) recovery.
D) recession.

Name: The phase of the business cycle where real GDP, or output, is contracting is the: A) peak. B) trough. C) recovery. D) recession.
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Question

Quizplus · Accepted Answer

The phase of the business cycle where real GDP, or output, is contracting is known as a recession. During a recession, economic activity decreases, leading to lower production, employment, and income.

The Phase of the Business Cycle Where Real GDP, or Output