PRC-3 · Chapter 15 · Question 28 of 44
At the very bottom of the business cycle, economic activity is completely stagnant, unemployment is exceptionally high, and it remains this way for years. This deep, prolonged trough is a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Depression
Explanation
A depression is an unusually severe and prolonged recession, representing the lowest point (trough) of a major economic cycle.
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