The Lowest level of output in business cycle is called?
The lowest level of output in the business cycle is called the trough or the contraction phase. This is the stage when economic activity is at its lowest point, indicating a period of recession or depression.
The lowest level of output in the business cycle is known as the trough or the recessionary phase. This phase occurs after a period of economic expansion and signifies a decline in economic activity. During a trough, production levels decrease, unemployment rises, and businesses may experience financial difficulties.
The lowest level of output in the business cycle is called the trough.
To find this answer independently, you can follow these steps:
1. Understand the business cycle: The business cycle refers to the recurring pattern of expansion (growth) and contraction (contraction) in an economy over time.
2. Identify the lowest point: Within the business cycle, the lowest point is known as the trough. It represents the bottom of the economic contraction phase before the economy begins to recover and enter the expansion phase.
3. Research and confirm: By conducting a search or referring to reliable sources such as economics textbooks or reputable websites, you can confirm that the lowest level of output in the business cycle is indeed referred to as the trough.
Please note that while I strive to provide accurate and up-to-date information, it's always a good idea to verify the information from trusted sources.