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The trough of a business cycle occur when _____ hits its lowest point.
- a)the money supply
- b)the employment level
- c)inflation in the economy
- d)aggregate economic activity
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
The trough of a business cycle occur when _____ hits its lowest point....
A trough is the stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion.
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Most Upvoted Answer
The trough of a business cycle occur when _____ hits its lowest point....
The trough of a business cycle occur when aggregate economic activity hits its lowest point.
Explanation:
- Business Cycle: A business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It is characterized by four stages - expansion, peak, contraction, and trough.
- Trough: The trough is the lowest point of the business cycle, where the economy is in a state of recession, with high unemployment, low production, and low demand.
- Aggregate Economic Activity: Aggregate economic activity refers to the total level of economic output or production in an economy, which is measured by the Gross Domestic Product (GDP).
- Lowest Point: The lowest point of the business cycle occurs when the aggregate economic activity or GDP hits its lowest point, signaling a contraction in the economy.
- Other Factors: Although factors like money supply, employment level, and inflation can also be affected by the business cycle, they are not necessarily the primary determinants of the trough.
Explanation:
- Business Cycle: A business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It is characterized by four stages - expansion, peak, contraction, and trough.
- Trough: The trough is the lowest point of the business cycle, where the economy is in a state of recession, with high unemployment, low production, and low demand.
- Aggregate Economic Activity: Aggregate economic activity refers to the total level of economic output or production in an economy, which is measured by the Gross Domestic Product (GDP).
- Lowest Point: The lowest point of the business cycle occurs when the aggregate economic activity or GDP hits its lowest point, signaling a contraction in the economy.
- Other Factors: Although factors like money supply, employment level, and inflation can also be affected by the business cycle, they are not necessarily the primary determinants of the trough.
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Community Answer
The trough of a business cycle occur when _____ hits its lowest point....
Peaks and troughs of the business cycle are known collectively as
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The trough of a business cycle occur when _____ hits its lowest point.a)the money supplyb)the employment levelc)inflation in the economyd)aggregate economic activityCorrect answer is option 'D'. Can you explain this answer?
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