This date marked the official end of the Great Recession, which began following the economic peak reached in Dec. 2007. Trough: A trough is an elongated region of relatively low atmospheric pressure, often associated with fronts.. also known as 低壓槽; Trough: In geology, a trough generally refers to a linear structural depression that extends laterally over a distance, while being less steep than a trench. The definition of a trough is a long and narrow container. In this phase, … In the diagram above, the straight line in the middle is the steady growth line. The offers that appear in this table are from partnerships from which Investopedia receives compensation. An economic recovery is a business cycle stage following a recession that is characterized by a sustained period of improving business activity. And fluctuations in economic activity mean fluctuations in macroeconomic variables. Even though a trough is the "lowest," this is not such a bad thing for the economy. A long, narrow, shallow channel or depression. Any of various similar containers for domestic or industrial use, such as kneading or washing. An economic contraction is a decline in national output as measured by gross domestic product.That includes a drop in real personal income, industrial production, and … This output constitutes the supply side of the market. The economy will then begin to contract as it slides down the backside of the peak and goes into recession. A gutter under the edge of a roof for carrying off rainwater. The most recognizable of these is gross domestic product (GDP), which is the total value of all goods and services that a country produces. The actual trough can only be identified in hindsight, and is marked by conditions like higher unemployment, layoffs, declining business sales and earnings, and lower credit availability. The boat rolled heavily in the troughs between the waves. Similar words: rough, roughly, borough, through, drought, brought, wrought, go through. The time evolution of many economics variables exhibits a wave-like behavior with local maxima (peaks) followed by local minima (troughs). The good thing about a trough, however, is that it is a turning point, a turning point to an expansion. The business cycle depicts the increase and decrease in production output of goods and services in an economy. The major U.S. stock market indices, such as the Dow Jones Industrial Average (DJIA) and Standard & Poor's 500 Index (S&P 500) also track closely with the business cycle. 3. The lowest point in variable measurement. a narrow depression (as in the earth or between ocean waves or in the ocean bed) 2. A trough, in economic terms, can refer to a stage in the business cycle where activity is bottoming, or where prices are bottoming, before a rise. Most commonly in economics, the relative price, on world markets, of a country's exports compared to its imports.Also called the net barter terms of trade and commodity terms of trade.See improve the terms of trade. Below is a more detailed description of each stage in the business cycle: It's when the economy hits bottom. Employment levels also offer an indicator of where the economy stands in the business cycle. Grammatically, this word "trough" is a noun, more specifically, a countable noun. Peaks and troughs are patterns that are developed by the price action experienced by all securities. A business cycle may be defined as the period between two consecutive peaks. Both are followed by either contraction or expansion. Trough: During the trough phase, the economic activities of a country decline below the normal level. Declines in the stock market coincide or foreshadow contraction in the economy. Importance of the Economic Cycle Every person is … Term trough Definition: The transition of a business cycle from a contraction and an expansion. An example of a trough is a long container in which plants grow next to each other. From the Cambridge English Corpus. Depression is one of the four stages of a business cycle. As an economy expands and its GDP grows, it will eventually reach a peak. Definition of Business Cycle: A capitalistic economy experiences fluctua­tions in the level of economic activity. When the unemployment rate rises from month to month, the economy has most likely entered a contractionary phase. At the end of 2007, the U.S. GDP reached an all-time high of $14.99 trillion. Troughs are important as they mark a positive turning point for the economy. A channel that a liquid flows through. A long, narrow depression, as between waves or ridges. An economic trough occurs after an expansion. Asset prices move up and down, forming peaks and troughs. While troughs vary in severity—with some troughs only being minor setbacks in economic growth, and others being sustained periods of hardship—they are typically marked with declining business sales and earnings, layoffs, low credit availability, higher unemployment, and business closures (all compared to the other business cycle phases). A business cycle may be defined as the period between two consecutive peaks. Explanation. any of several similarly shaped receptacles used for various commercial or household purposes. —trough verb [ intransitive] This is the biggest fall in economic activity since the recession troughed five years ago. A long, narrow container, open on top, for feeding or watering animals.. Any similarly shaped container. What to Call the Period Just Before Rock Bottom? A long, narrow, generally shallow receptacle for holding water or feed for animals. The end of a contraction carries the descriptive term trough. It is only once the economic activity begins to increase again, as shown on economic indicators, that expansion is likely underway and the trough (or bottom) has been put in. A period of expansion ensued, with the GDP eventually surpassing its 2007 high, reaching $15.02 trillion by Sept. 2011. [+ between] 3. countable noun A trough is a low point in a process that has regular high and low points, for example a period in business when people do … That's the month when the economy transitions from the contraction phase to the expansion phase. a drinking-trough for the cattle. b. A long hollow in the Earth’s surface. In this phase, the growth rate of an economy becomes negative. As the economic indicators contract, the economy is in a contraction phase. This business-related article is a stub. As the bases of the microvilli are lining up on ridges, troughs are forming in between … Technical traders also sometimes refer to swing lows as troughs, and swing highs as peaks. Terms of trade: 1. Depression (also known as trough) is an economics term referring to the stage of business cycle in which a regional or world economy operates at its lowest level. A long, narrow open container used for growing plants. Each of those two phases have another two, add-on’s, if you will. Fortunately, because a trough is a turning point, it means that an expansion is about to begin. English-French English Synonyms English for learners Grammar. The trough is characterized as a low point in the economy from which it can re-enter an expansionary phase. The business cycle moves about the line. It is preceded by recession stage and succeeded by recovery stage. Expansion is the phase of the business cycle where real GDP grows for two or more consecutive quarters, moving from a trough to a peak. trough noun [C] (LOW POINT) a low point in a regular series of high and low points: Investing small amounts regularly is a good way of smoothing out the peaks and troughs of the stock market. In economics, a trough is a low turning point or a local minimum of a business cycle. trough /trɒftrɒːf/ noun [ countable] the lowest point in a series of prices, values etc the peaks and troughs of investing in stocks and shares When would the nation come out of its economic trough? 5. [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. When the unemployment rate bottoms out, a trough has likely occurred. a channel or conduit for conveying water, as a gutter under the eaves of a building for carrying away … 3. Learn how and when to remove this template message, https://en.wikipedia.org/w/index.php?title=Trough_(economics)&oldid=1001957118, Articles needing additional references from April 2017, All articles needing additional references, Creative Commons Attribution-ShareAlike License, This page was last edited on 22 January 2021, at 04:02. A peak refers to the pinnacle point of economic growth in a business cycle before the market enters into a period of contraction. trough in Economics topic From Longman Dictionary of Contemporary English trough /trɒf $ trɒːf/ noun [ countable] 1 container a long narrow open container that holds water or food for animals a horse trough … 4. These being Peak meaning top and Trough meaning bottom. Incomes and wages are also indicators for where the economy stands in the business cycle. A contraction is a phase of the business cycle where a country's real gross domestic product (GDP) has declined for two or more consecutive quarters, moving from a peak to a trough. The recovery to this recession, marked by the ensuing expansionary phase, was robust, with the GDP surpassing $9 trillion for the first time ever before the end of 1991. 4. It is the period from peak to trough. The trough is the fourth phase. The business cycle is the upward and downward movement of gross domestic product (GDP) and consists … In addition, in trough phase, there is a rapid decline in national income and expenditure. You can help Wikipedia by expanding it. It means the economy is making the turn toward prosperity. The business cycle's four phases can be so severe that they’re also called the boom and bust cycle. trough: ( trawf ), 1. In a recession, the point of the most negative GDP growth that immediately precedes the beginning of recovery.In other words, it is the lowest point in a business cycle.The term comes from charting, in which the x-axis represents time and the y-axis represents GDP growth.In this situation, the low point of a business cycle looks like a trough or pit. Formally, exchange-rate pass-through is the elasticity of local-currency import prices with respect to the local-currency price of foreign currency. These increase during expansion, recede during contraction, and bottom out during a trough. Troughs are a regular part of the business cycle. In economics, a trough is a low turning point or a local minimum of a business cycle. trough) I Plant capacity is constant. At times, consumption, investment, employment, output, etc., rise and at other times these macroeconomic variables fall. This phase can last for a short or long period of time. A business-cycle trough means the economy has reached the lowest level of production in recent times. Since this is an economic term this definition is very wide and includes any economic activity that supplies a good or service to society. At that date, the GDP stood at $8.87, down from $8.98 trillion in July 1990, the month the recession began. As we know, prices never move in straight lines, whether in an uptrend or a downtrend. The trough is the bottoming process of moving from contraction, or declining business activity, to recovery, which is increasing business activity. 2. trough definition, trough meaning | English dictionary. The business cycle is the upward and downward movement of gross domestic product and consists of recessions and expansions that end in peaks and troughs. An economic trough occurred in June 2009. Antonym: crest. The alignment criterion is based on aligning the two largest peaks or troughs. At the trough, the economy has reached the lowest level of production in recent times. Meaning of trough for the defined word. By using and combining the factors of production (land, labor, capital and technology) these organizations or individuals produce an output. The business cycle is the upward and downward movement of gross domestic product (GDP) and consists of recessions and expansions that end in peaks and troughs. When stocks rally after a significant decline, it could signal the economic trough is in, or coming soon, leading to a rise in economic activity. In non-business English, a trough can mean: 1. A trough is the stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. Peak: The upper turning point of a business cycle and the point at which expansion turns into contraction. The definition of trough in Dictionary is as: A long, narrow container, open on top, for feeding or watering animals. Figure 1.0. The time evolution of many economics variables exhibits a wave-like behavior with local maxima (peaks) followed by local minima (troughs). The velocity of money is a measurement of the rate at which consumers and businesses exchange money in an economy. A long, narrow open container that farm animals or working animals drink or eat out of. [3]. It then fell steadily for the next year and a half, a period of severe economic contraction. An example of a trough is what pigs eat out of. Managerial Economics: Unit 4 - Price discrimination20/ 39 Video shows what trough means. A trough is a low area between two big waves on the sea. The business cycle moves in five phases: expansion, peak, contraction, trough, and recovery. Economists use several metrics to track the economic cycle throughout its various phases. ADVERTISEMENTS: 1. Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates.. Contraction: A slowdown in the pace of economic activity defined by low or stagnant growth, high unemployment, and declining prices. ... (Economics) the lowest point or most depressed stage of the trade cycle ... Search trough and thousands of other words in English definition and synonym dictionary from Reverso. trough (trôf, trŏf) n. 1. a. During the U.S. recession of the early 1990s, the trough occurred in March 1991. 1. a long, low, open container for animals' food or water. Unemployment levels of less than 5% are consistent with full employment and are indicative of economic expansion. Find 16 ways to say trough, along with antonyms, related words, and example sentences at Thesaurus.com, the world's most trusted free thesaurus. 2. * Introduced by Marshall (1923). 4. Troughs are recognizable in hindsight, but harder to spot in real-time. [Origin] 2. The period marked from trough to peak. In June 2009, it bottomed out at $14.36 trillion.
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