Trough Business Cycle
The four stages of the economic cycle are also referred to as the business cycle.
Trough business cycle. A trough in economics is the point in the business cycle between the end of a recession and the transition to accelerating GDP gross domestic product growth. The chronology identifies the dates of peaks and troughs that frame economic recessions and expansions. Theres no set intervals for each phase but there are signs that can tell you which phase youre in and help you predict when there will next be a downturn.
Each business cycle has four phases. In the depression stage the economys growth rate becomes negative. Consecutively it consists of the contraction trough expansion and peak phases.
US Business Cycle Expansions and Contractions Contractions recessions start at the peak of a business cycle and end at the trough. It is the negative saturation point for an economy. Business Cycle is defined as a series of repetitive upward and downward growth cycles in the pace of the company or economic activities of a country and guides the policymakers in the decision-making process.
Economists say that the business cycle goes through four main stages. The business cycles trough stage directly contrasts its peak phase. In economics a trough is a low turning point or a local minimum of a business cycle.
Oddly enough the 4 phases of the business cycle are closely related. Expansion peak contraction and trough. The expansion phase occurs between the trough and peak.
Contraction the period when economic activity decreases. Expansion peak contraction and trough. The Balance 2018.