The period of the business cycle in which the real GDP is increasing is called the?

And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going through a lot of questions. Both online and previous year's questions from my school. This is quite confusing. I think it is expansion. Then I saw an article on trough on wikipedia that says it is trough. https://en.wikipedia.org/wiki/Trough_(economics) Please explain


The trough is not a period, it is simply the lowest point. The opposite of this is a peak, i.e. the highest point. The answer you are looking for is "Expansion" or "Boom". The period in which GDP is falling is called "Recession" or "Contraction".

Also note that the business cycle is typically not defined using real GDP, but rather nominal GDP.

  • $\begingroup$ Oh. Thank you very much sir. I thought as much. Then that article in wikipedia really needs editing. Have you checked the link? $\endgroup$ – user274246 Oct 11 '15 at 12:13
  • $\begingroup$ You're welcome. Don't forget to accept the answer and possibly upvote it if you liked it :). $\endgroup$ – BB King Oct 11 '15 at 12:14
  • $\begingroup$ Yes sir. Please can I ask you one more minor question? $\endgroup$ – user274246 Oct 11 '15 at 12:22
  • $\begingroup$ I have checked the link. Its not technically wrong, but I see how it would be easy to misunderstand the Wikipedia article. Ask as many questions as you like :) $\endgroup$ – BB King Oct 11 '15 at 12:23
  • $\begingroup$ Oh. The error is in the last sentence. $\endgroup$ – user274246 Oct 11 '15 at 12:38

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