Question

What is the stage in a business cycle called when real GDP stops falling?
a. an expansion
b. a contraction
c. a trough
d. a peak

Answer 1

The right answer for the question that is being asked and shown above is that: "b. a contraction" the stage in a business cycle called when real GDP stops falling is called a contraction. This is the correct answer as far as the stage in business cycle is concerned.

Answer 2

The correct answer is D. Trough.