What is the "trough" in a business cycle?
A. The highest point of GDP before a slowdown
B. A temporary drop in inflation
C. The lowest point of economic activity before recovery
D. The point where all unemployment ends
Answer (1)
The correct answer is letter C. The trough is the bottom phase of the business cycle, when GDP and employment are at their lowest. After the trough, the economy starts to recover. In the Philippines, the mid-2020 lockdown period was considered a trough when many industries were shut down.
