In the business cycle, the trough is followed by recovery.
Understand the Problem
The question is discussing the business cycle, specifically focusing on the phase called 'trough' and how it leads to the 'recovery' phase. It seeks to clarify the relationship and sequence between these two stages in the economic cycle.
Answer
Recovery
The phase that follows a trough in the business cycle is the recovery phase.
Answer for screen readers
The phase that follows a trough in the business cycle is the recovery phase.
More Information
In the business cycle, the recovery phase is characterized by increasing business activity after a period of contraction. This phase often leads to expansion where businesses grow, and confidence returns.
Tips
A common mistake is confusing the recovery phase with expansion. Recovery is the initial phase after a trough, leading up to expansion.
Sources
- Business Cycle - Definition, How to Measure and 6 Different Stages - corporatefinanceinstitute.com
- Lesson summary: Business cycles (article) - Khan Academy - khanacademy.org
- Business Cycle: What It Is, How to Measure It, and Its 4 Phases - investopedia.com
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