In the business cycle, the trough is followed by recovery. True or false?
Understand the Problem
The question is asking whether it is true or false that in the business cycle, the trough is followed by recovery. This reflects an understanding of economic cycles.
Answer
True
True, the trough is followed by recovery in the business cycle.
Answer for screen readers
True, the trough is followed by recovery in the business cycle.
More Information
When an economy reaches the trough phase of the business cycle, it is the point at which economic activity is at its lowest. Following the trough, the economy typically enters a recovery phase, characterized by an increase in economic activity and growth.
Sources
- CFI: Business Cycle Overview - corporatefinanceinstitute.com
- Trough: Examples of Phase in Business Cycle - Investopedia - investopedia.com
- Lesson summary: Business cycles - Khan Academy - khanacademy.org
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