<p>The trough is not a period, it is simply the lowest <strong>point</strong>. The opposite of this is a peak, i.e. the highest point. The answer you are looking for is "Expansion" or "Boom". The period in which GDP is falling is called "Recession" or "Contraction".</p>

<p>Also note that the business cycle is typically not defined using real GDP, but rather nominal GDP.</p>

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2015-10-11T12:13:40.847Z
Oh. Thank you very much sir. I thought as much. Then that article in wikipedia really needs editing. Have you checked the link?
user274246
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2015-10-11T12:14:59.233Z
You're welcome. Don't forget to accept the answer and possibly upvote it if you liked it :).
BB King
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2015-10-11T12:22:48.717Z
Yes sir. Please can I ask you one more minor question?
user274246
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2015-10-11T12:23:51.733Z
I have checked the link. Its not technically wrong, but I see how it would be easy to misunderstand the Wikipedia article. Ask as many questions as you like :)
BB King
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2015-10-11T12:38:01.037Z
Oh. The error is in the last sentence.
user274246
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2015-10-11T12:41:51.450Z
Also sir. Which of the following is excluded from the calculation of GDP and why... a. The income tax paid by a household in a given year b. A good produced in a given year but not sold in that year c. A business purchases new furniture d. A consumer purchases an iPod from a store?
user274246
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2015-10-11T12:43:40.447Z
This is a multiple choice question from my college's previous examination. So i'm answering as much as possible in preparation for my exams. I think it is A because households activities are not shown in GDP
user274246
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2015-10-11T13:37:15.747Z
Sir. I'm sure it's A now. please can you explain how the wikipedia article is not technically wrong especially the last statement on the article?
user274246
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2015-10-11T15:45:04.663Z
The last statement as far as I can see reads: "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."

This is true. The lowest point is the trough. The highest point is the peak. The movement between the two points, must be upward as we go from lowest to highest. This period is an increase of GDP and is referred to as "expansion" in the article. The last statement does not refer to the point trough itself, but the movement away from it, which is something else.
BB King
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2015-10-11T17:07:51.480Z
Let us [continue this discussion in chat](http://chat.stackexchange.com/rooms/30141/discussion-between-user274246-and-bb-king).
user274246
CC BY-SA 3.0
2015-10-11T12:02:18.943Z
2015-10-11T12:02:18.943Z
BB King
<p>The period of the business cycle in which the real GDP is increasing is called the?</p>

<p>And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going through a lot of questions. Both online and previous year's questions from my school. This is quite confusing. I think it is expansion. Then I saw an article on trough on wikipedia that says it is trough. <a href="https://en.wikipedia.org/wiki/Trough_(economics)" rel="nofollow">https://en.wikipedia.org/wiki/Trough_(economics)</a>
 Please explain</p>

<macroeconomics><microeconomics><gdp><business-cycles><real-business-cycles>
The period of the business cycle in which the real GDP is increasing is called the?
user274246
# The period of the business cycle in which the real GDP is increasing is called the?

(Asked by: username_0 on 2015-10-11)

The period of the business cycle in which the real GDP is increasing is called the?

And no, this is not an homework question. I'm a college student and we starting our exams soon. I'm just going through a lot of questions. Both online and previous year's questions from my school. This is quite confusing. I think it is expansion. Then I saw an article on trough on wikipedia that says it is trough. <https://en.wikipedia.org/wiki/Trough_(economics)>
Please explain

**Tags:** macroeconomics, microeconomics, gdp, business-cycles, real-business-cycles


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## 1 answers

### Answer by username_1 on 2015-10-11. Score: 0 | Accepted answer

The trough is not a period, it is simply the lowest **point**. The opposite of this is a peak, i.e. the highest point. The answer you are looking for is "Expansion" or "Boom". The period in which GDP is falling is called "Recession" or "Contraction".

Also note that the business cycle is typically not defined using real GDP, but rather nominal GDP.

> **Comments:**
> **username_0**: Oh. Thank you very much sir. I thought as much. Then that article in wikipedia really needs editing. Have you checked the link?  
> **username_1**: You're welcome. Don't forget to accept the answer and possibly upvote it if you liked it :).  
> **username_0**: Yes sir. Please can I ask you one more minor question?  
> **username_1**: I have checked the link. Its not technically wrong, but I see how it would be easy to misunderstand the Wikipedia article. Ask as many questions as you like :)  
> **username_0**: Oh. The error is in the last sentence.  
> **username_0**: Also sir. Which of the following is excluded from the calculation of GDP and why... a. The income tax paid by a household in a given year b. A good produced in a given year but not sold in that year c. A business purchases new furniture d. A consumer purchases an iPod from a store?  
> **username_0**: This is a multiple choice question from my college's previous examination. So i'm answering as much as possible in preparation for my exams. I think it is A because households activities are not shown in GDP  
> **username_0**: Sir. I'm sure it's A now. please can you explain how the wikipedia article is not technically wrong especially the last statement on the article?  
> **username_1**: The last statement as far as I can see reads: "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."  This is true. The lowest point is the trough. The highest point is the peak. The movement between the two points, must be upward as we go from lowest to highest. This period is an increase of GDP and is referred to as "expansion" in the article. The last statement does not refer to the point trough itself, but the movement away from it, which is something else.  
> **username_0**: Let us [continue this discussion in chat](http://chat.stackexchange.com/rooms/30141/discussion-between-username_0-and-bb-king).  

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