What does the trough represent in the business cycle?

The trough represents the lowest turning point of economic activity in the business cycle. At this stage, economic performance is at its weakest, marked by declining GDP, reduced consumer spending, high unemployment rates, and overall economic stagnation. The trough is significant because it indicates the end of a recession and the point at which the economy can begin to recover. Understanding the trough is essential for making informed economic decisions, as it signals potential investment opportunities and the start of an upward trend towards recovery and growth. This concept is fundamental in analyzing economic fluctuations and forecasting future economic conditions.