Question

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

• expansion
• peak
• contraction
• trough

Explanation:

The business cycle consists of stages. Expansion is growth, Peak is the high point, Contraction is a downturn, and Trough is the lowest point of economic activity before recovery. So when an economy reaches its low point, it's in the Trough stage.

Answer:

D. Trough