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NISM Certifications · NISM-Series-XV: Research Analyst · Economic Analysis

In the business cycle, the phase in which output is falling, but has not yet reached its lowest point, is called:

This phase is called contraction. It lies between the peak and the trough, with output declining but not yet at its lowest point. Expansion is the rising phase, while the peak and trough are the upper and lower turning points of the cycle.

  1. AExpansion
  2. BPeak
  3. CContractionCorrect
  4. DTrough

Explanation

Contraction is the phase between the peak and the trough in which economic activity declines. The peak is the top turning point, the trough the bottom, and expansion is the rising phase.

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