Question

Following a trough in the business cycle, real gross domestic product increases.

True
False

Answer 1

True. Following a trough in the business cycle, real GDP increases.

Step-by-step explanation:

True.

Following a trough in the business cycle, real gross domestic product (GDP) increases. The business cycle consists of alternating periods of economic expansion (growth) and contraction (decline). After a recession or a period of economic decline (which occurs at the trough of the business cycle), the economy starts to recover, leading to an increase in real GDP.