Recovery . After the trough, the economy moves to the stage of recovery. In this phase, there is a turnaround in the economy, and it begins to recover from the negative growth rate. Demand starts to pick up due to low prices and, consequently, supply begins to increase.
What stage of business cycle immediately follows the trough?
The correct answer is b (recovery) . The trough phase of the business cycle is reached when the economy is at its lowest point, i.e., the employment...
What occurs after a trough in the business cycle?
An economic trough occurs after an expansion . Troughs are a regular part of the business cycle. As an economy expands and its GDP grows, it will eventually reach a peak. The economy will then begin to contract as it slides down the backside of the peak and goes into recession.
What stage of the business cycle immediately follows the trough quizlet?
recovery / The stage of business cycle immediately following the trough is the recovery or expansion .
What are the 4 stages of the business cycle?
The four stages of the cycle are expansion, peak, contraction, and trough . Factors such as GDP, interest rates, total employment, and consumer spending, can help determine the current stage of the economic cycle.
What is peak in the business cycle?
A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall.
Which phase of the business cycle follows a recovery?
When an economy is recovering from a recession, it is in the expansion phase of the business cycle, but it is not experiencing economic growth. Economic growth occurs when the potential and actual output of a nation increases over time.
What happens after a trough?
After the trough, the economy moves to the stage of recovery . In this phase, there is a turnaround in the economy, and it begins to recover from the negative growth rate. Demand starts to pick up due to low prices and, consequently, supply begins to increase.
What does trough indicate?
What does a trough indicate? The GDP has stopped declining and has begun to increase .
What phase of the business cycle are we in 2021?
Third Quarter 2021
The U.S. shifted fully into the mid-cycle phase , as a broadening expansion accompanied the economy's reopening. Major economies are on differing trajectories, with a number of developing countries inhibited in particular by their more-limited vaccination and reopening progress.
What are the 5 phases of the business cycle?
The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline .
In which phase of the business cycle does a recession occur quizlet?
Which phase of a business cycle can lead an economy into recession? The trough phase– it's the lowest point in economic contraction and real GDP stops falling. A recession is real GDP falling for two consecutive quarters (six months) and unemployment usually rises between 6% and 10%.
Which of the following is at its highest at the trough of a business cycle?
Real output (GDP) is at its highest point of the business cycle.
What is business cycle and its features?
The business cycle refers to the vast economic fluctuations in trade, production, and general economic activities . ... The features of the business cycle have different phases. Business cycles are identified into four distinct phases: Expansion, Peak, Contraction, and Trough.
Which of the following describes a business cycle?
From a conceptual perspective, the business cycle is the upward and downward movements of levels of GDP (gross domestic product) and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around a long-term growth trend.
What generally causes the business cycle?
The business cycle is caused by the forces of supply and demand—the movement of the gross domestic product GDP—the availability of capital, and expectations about the future . This cycle is generally separated into four distinct segments, expansion, peak, contraction, and trough.
