20
QuizMultiple Choice

Macroeconomics — Test

Question 20 • Economics

Which stage of the business cycle is an economy in when it reaches its low point?

Answer
A
Contraction
B
Peak
C
Expansion
D
Trough

Explanation

The low point of the business cycle is called a trough. It marks the end of a contraction, after which the economy may begin expanding again. Therefore, the correct choice is Trough.

AI-written and checked against the verified answer.

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