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


1 Answer 1


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, 2015 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, 2015 at 12:14
  • $\begingroup$ Yes sir. Please can I ask you one more minor question? $\endgroup$
    – user274246
    Oct 11, 2015 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, 2015 at 12:23
  • $\begingroup$ Oh. The error is in the last sentence. $\endgroup$
    – user274246
    Oct 11, 2015 at 12:38

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.