Question

A period of economic growth that follows the lowest point in a business cycle

is called a(n)

A. trough
B. peak
C. contraction
D. expansion

Answer 1

D. expansion

Step-by-step explanation:

A business cycle is made up of six stages including: expansion, peak, recession, depression, trough, and recovery.

The trough is the lowest stage of the business cycle.

It is followed by recovery where the economy starts to turn around.

However the stage of economic growth after a trough is the expansion stage, where real gross domestic product (GDP) grows for more than 2 quarters.

This stage is characterised by rise in consumer confidence, employment, and the equity market.