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Part of the behavioral sciences |
Economics |
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In economics, a trough is a low turning point or a local minimum of a business cycle. The time evolution of many economics variables exhibits a wave-like behavior with local maxima (peaks) followed by local minima (troughs). A business cycle may be defined as the period between two consecutive peaks. [1] [2]
The period of the business cycle in which real GDP is increasing is called the expansion, in which the real GDP moves from the trough towards the peak. [3]