Question

In the business cycle, what always follows immediately after a contraction?

A) depression
B) expansion
C) recession
D) trough

Answer 1

trough

Step-by-step explanation:

It would be a trough that succeeds shortly after a contraction in a business cycle. Moreover, it is called a "local minima" wherein it displays one of the weakest points taking place in a business cycle. What follows the rapid would be expansion wherein the business begins to rise again. Business cycles are defined by the boom in one period and breakdown in the following period in the financial activities of a country. During the trough phase, the business activities of a country deterioration under the average level. In this state, the growth rate of an administration becomes uninterested. In addition, in the trough phase, there is a fast drop in national income and expense.