Home › AP Macroeconomics › Economics › Measuring Economic Output › The lowest point of a recession, before a recove…
The lowest point of a recession, before a recovery begins, is called the:
AA plateau
BA ceiling
CThe trough
DThe peak
Answer & Solution
Correct answer: C. The trough
1. The cycle has a bottom as well as a top.
2. The highest point before a recession begins is the peak.
3. The lowest point of a recession, before a recovery begins, is the trough.
4. Recovery then carries the economy back toward a new peak.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_
Related questions
A shift from manufacturing toward services shows up in GDP as a change in its:The peak and the trough are best described as the two:Because GDP counts output produced within a country, it excludes production located:A country with rapidly growing GDP but even faster population growth will see GDP per capiAn economy whose nominal GDP rises while prices rise faster has real GDP that is:Structures are counted in GDP as one of the categories alongside goods, services and:Comparing two countries' living standards is better done with GDP per capita than total GDOnly final goods and services are counted in GDP, which avoids counting the same output: