4
QuizMultiple Choice

Macroeconomics — Test

Question 4 • Personal Finance and Economics

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

Answer
A
Expansion
B
Contraction
C
Trough
D
Peak

Explanation

The low point of the business cycle is called a trough. It marks the end of a contraction, after which the economy may begin expanding again. Therefore, the correct choice is Trough.

AI-written and checked against the verified answer.

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