Asked by Emily Maniccia on May 19, 2024
Verified
A period of sustained decline in output in an economy is known as a(n) _____.
A) expansion
B) stagnation
C) peak
D) trough
E) contraction
Sustained Decline
A continuous decrease over a significant period, often referring to economic indicators like GDP or employment.
Output
The quantity of goods or services produced in a given time period by a firm, industry, or country.
Contraction
A period during which the economy declines as reflected by falling output, employment, income, and other aggregate measures.
- Comprehend the basics of economic shifts, which include depressions and recoveries and their signals.
Verified Answer
PL
Pantelia LamnatosMay 19, 2024
Final Answer :
E
Explanation :
A period of sustained decline in output in an economy is known as a contraction. The other options refer to different stages of the business cycle: expansion is when output and employment increase, stagnation is a prolonged period of little or no growth, peak is the highest point of the cycle before a contraction, and trough is the lowest point of the cycle before an expansion.
Learning Objectives
- Comprehend the basics of economic shifts, which include depressions and recoveries and their signals.