all of the wiring for the converted residential loft is concealed in a vertical trough Recent Examples on the Web The speed and strength of the upper trough will ultimately determine the track of Eta. Expansion. A recession is the period between a peak of economic activity and its subsequent trough, or lowest point. The trend rate of growth is the long run average rate for a country over a period of time. When the unemployment rate rises from month to month, the economy has most likely entered a contractionary phase. In this phase, the growth rate of an economy becomes negative. Consumer discretionary is an economic sector comprising non-essential products that individuals may only purchase when they have excess cash. The offers that appear in this table are from partnerships from which Investopedia receives compensation. In June 2009, it bottomed out at $14.36 trillion. The economy will then begin to contract as it slides down the backside of the peak and goes into recession. Back to: ECONOMIC ANALYSIS & MONETARY POLICY. The chronology identifies the dates of peaks and troughs that frame economic recessions and expansions. Listen to the audio pronunciation in the Cambridge English Dictionary. Listen to the audio pronunciation in English. This date marked the official end of the Great Recession, which began following the economic peak reached in Dec. 2007. In which the real GDP moves from the trough towards the peak. In a recession, the point of the most negative GDP growth that immediately precedes the beginning of recovery.In other words, it is the lowest point in a business cycle.The term comes from charting, in which the x-axis represents time and the y-axis represents GDP growth.In this situation, the low point of a business cycle looks like a trough or pit. Most people chose this as the best definition of trough: The definition of a troug... See the dictionary meaning, pronunciation, and sentence examples. These increase during expansion, recede during contraction, and bottom out during a trough. trough (trôf, trŏf) n. 1. a. Earlier, the pace of degradation was reduced, later employment starts increasing. The Great Depression (1929-39) was the longest lasting and deepest economic depression in the history of the modern industrial world. The period marked from trough to peak. An economic recovery is a business cycle stage following a recession that is characterized by a sustained period of improving business activity. more. / Trough Phase of the Business Cycle: Definition and Characteristics What’s it: Through phase is the lowest point of the business cycle . While troughs vary in severity—with some troughs only being minor setbacks in economic growth, and others being sustained periods of hardship—they are typically marked with declining business sales and earnings, layoffs, low credit availability, higher unemployment, and business closures (all compared to the other business cycle phases). Term trough Definition: The transition of a business cycle from a contraction and an expansion. Expansion is the normal state of the economy; most recessions are brief. This phase can last for a short or long period of time. Trough (economics), the lowest turning point of a business cycle; Trough (food) or manger, a container for animal feed; Watering trough, a receptacle of drinking water for domestic and non-domestic livestock 4. A simple definition: A fall in real GDP for two consecutive quarters i.e. Definition of Business Cycle: A capitalistic economy experiences fluctuations in the level of economic activity. ADVERTISEMENTS: 1. The business cycle is the upward and downward movement of gross domestic product (GDP) and consists of recessions and expansions that end in peaks and troughs. Learn more. The major U.S. stock market indices, such as the Dow Jones Industrial Average (DJIA) and Standard & Poor's 500 Index (S&P 500) also track closely with the business cycle. Learn more. Have a definition for Trough (economics) ? The trough is the fourth phase. A trough, in economic terms, can refer to a stage in the business cycle where activity is bottoming, or where prices are bottoming, before a rise. The good thing about a trough, however, is that it is a turning point, a turning point to an expansion. A long, narrow depression, as between waves or ridges. And fluctuations in economic activity mean fluctuations in macroeconomic variables. Looking back afterwards you will see that this was not a terminal trough in your career. The following are examples of topics in economics. In economics, a trough is a low turning point or a local minimum of a business cycle. How to pronounce trough. The economy is in a trough right now. b. This revision note looks at trend or long term growth in an economy. 3. The business cycle moves in five phases: expansion, peak, contraction, trough, and recovery. 3. Economists say that the business cycle goes through four main stages: 1. [3], Learn how and when to remove this template message, https://en.wikipedia.org/w/index.php?title=Trough_(economics)&oldid=980701826, Articles with too few wikilinks from January 2019, Articles covered by WikiProject Wikify from January 2019, All articles covered by WikiProject Wikify, Articles needing additional references from April 2017, All articles needing additional references, Creative Commons Attribution-ShareAlike License, This page was last edited on 27 September 2020, at 23:17. The business cycle's four phases can be so severe that they’re also called the boom and bust cycle. An economic trough occurred in June 2009. 2. In a recession, the point of the most negative GDP growth that immediately precedes the beginning of recovery.In other words, it is the lowest point in a business cycle.The term comes from charting, in which the x-axis represents time and the y-axis represents GDP growth.In this situation, the low point of a business cycle looks like a trough or pit. Troughs are recognizable in hindsight, but harder to spot in real-time. Troughs are a regular part of the business cycle. A business cycle may be defined as the period between two consecutive peaks. As between waves or ridges its deepest point before leading to economic recovery and expansion output etc.... Long period of severe economic contraction began following the economic cycle is the period between peak... Cycle and the economy is in a contraction carries the descriptive term trough the economy is in a cycle! Excess cash turning point of economic activity hits a low turning point an. 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