trough definition economics

In economics, a trough is a low turning point or a local minimum of a business cycle. In non-business English, a trough can mean: 1. Trough may refer to:. Meaning of trough. 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 not produce as much as usual. Term trough Definition: The transition of a business cycle from a contraction and an expansion. All Rights Reserved. These increase during expansion, recede during contraction, and bottom out during a trough. Learn vocabulary, terms, and more with flashcards, games, and other study tools. An expansion is the period from a trough to a peak, and a recession as the period from a peak to a trough. Housing booms crater, while depressed real estate markets eventually recover.” (Image: adapted from static3.businessinsider.com). trough. Expansion. The business cycle often parallels share price changes in the stock market cycle. Meaning of trough. 2. How to use trough in a sentence. 4. The peak is the top of the economic growth mountain – the moment when GDP growth transitions into the contraction phase. The pigs fed off the same trough. 2. Business Cycle Cycle Business Life Cycle Stages. When the unemployment rate rises from month to month, the economy has most likely entered a contractionary phase. Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough. Trough. Business cycle (economic cycle) refers to fluctuations in economic output in a country or countries. Examples of trough in the following topics: The Business Cycle: Definition and Phases. The term comes from charting, in which the x-axis represents time and the y-axis represents GDP growth. Economists use monthly business cycle peaks and troughs designated by the National Bureau of Economic Research (NBER) to define periods of expansion and contractions. Expansion is the phase of the business cycle when the economy moves from a trough to a peak. The trough is the fourth phase. A Depression is a long-lasting recessing. Another word for trough. How the inputs to the model work Trough may refer to:. I will also look at the impact of collecting payment for a year in advance impacts cash flow. Trough Definition Economic Terms Trough Business Innovation. The lowest point in variable measurement. Recession Phase. In other words, it is the lowest point in a business cycle. The trough is the bottom of the wave, the point between recession and expansion – the point between the falling line and the rising line. How the inputs to the model work During the expansion phase the stock market is bullish – investors buy. A business cycle may be defined as the period between two consecutive peaks. Information and translations of trough in the most comprehensive dictionary definitions resource on … Between trough and peak, the economy is in an expansion. Well known cycle phases include recession, depression, recovery, and expansion. The business cycle depicts the increase and decrease in production output of goods and services in an economy. This article will focus on the term when it is used in business, economics, finance and statistics. Assuming a successful economy is achieving GDP growth over the long-term, business cycles tend to have waves that rise and fall gradually – not steeply – over a period of years. 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 lowest part between two waves in the sea. 100 examples: In particular, the wave become asymmetric with the amplitudes of crests… 2. The trough is the bottoming process of moving from contraction, or declining business activity, to recovery, which is increasing business activity. 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. a long, narrow, open receptacle, usually boxlike in shape, used chiefly to hold water or food for animals. Occasionally, the waves are much steeper, as occurred during the period of rapid growth leading up to 2007, followed by the global financial crisis of 2007/8, and the Great Recession that it triggered. Income, employment, output, price level, etc. A business cycle is one V-shaped wave – from peak to peak. The trough is the fourth phase. Unemployment levels of less than 5% are consistent with full employment and are indicative of economic expansion. Troughs are recognizable in hindsight, but harder to spot in real-time. : a long, shallow container from which animals (such as cows, pigs, horses, etc.) The business cycle moves in five phases: expansion, peak, contraction, trough, and recovery. A depression is generally character­ised by high unemployment of labour and capital and a low level of consumer demand in relation to the economy’s capacity to pro­duce. : a long, low area between waves or hills. Any of various similar containers for domestic or industrial use, such as kneading or washing. A channel that a liquid flows through. – Trough: this phase occurs when the economy transitions from the shrinking phase to the expansion phase. As an economy expands and its GDP grows, it will eventually reach a peak. The wave, usually illustrated in a graph, shows how GDP rises and falls over time. 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. trough: ( trawf ), 1. At trough, employment stop falling. What does trough mean? Expansion is the normal state of the economy; most recessions are brief. GDP growth weakens, and may even turn negative. Bread trough or dough trough, rectangular receptacle with a shallow basin, used in breadmaking; Trough (food) or manger, a container for animal feed go down. Examples of trough in the following topics: The Business Cycle: Definition and Phases. trough definition in English dictionary, trough meaning, synonyms, see also 'pneumatic trough',through',tough',trog'. The economy will then begin to contract as it slides down the backside of the peak and goes into recession. 4. Asset prices move up and down, forming peaks and troughs. Trough (meteorology), an elongated region of low atmospheric pressure Trough (physics), the lowest point on a wave Trough level (medicine), the lowest concentration of a medicine is present in the body over time Langmuir-Blodgett trough, a laboratory instrument Lexicon.ft.com, the Financial Times’ glossary of terms, defines the term ‘peak-to-trough’ as follows: “The stage of the business or market cycle from the end of a period of growth (peak) into declining activity and contraction until it hits its ultimate cyclical bottom (trough).”, “This is the change in a data measure – e.g., an asset price or economic statistic – from its highest point to its lowest point. At trough, employment stop falling. Definition of trough in the Definitions.net dictionary. The economic cycle is the ebb and flow of the economy between times of expansion and contraction. Each business cycle has four stages: – Expansion: this occurs between the trough and the peak; it is when GDP is growing, unemployment reaches its natural rate, and inflation nears the central banks’ 2% target. What to Call the Period Just Before Rock Bottom? 1. a long, narrow, open receptacle, usu. The time evolution of many variables of economics exhibit a wave like behavior with local maxima (peaks) followed by local minima (troughs). It's when the economy hits bottom. They led the workhorses to the watering trough. The offers that appear in this table are from partnerships from which Investopedia receives compensation. In Part 2 of this blog series, I will look at how ramping a sales force where you add multiple sales hires every month affects this trough. These four phases also make up what is known as the "boom-and-bust" cycles, which are characterized as business cycles in which the periods of expansion are swift and the subsequent contraction is steep and severe. It's when the economy hits bottom. A period of significant decline in total output, income, employment, and trade that usually lasts from 6 months to a year. During the U.S. recession of the early 1990s, the trough occurred in March 1991. Trough: The lowest turning point of a business cycle in which a contraction turns into an expansion. And you could maybe call one cycle, you could say it's from one peak to one peak or one trough to one trough, or whatever you want to call it, it's this idea that the economy isn't just a nice, steady-as-you-go growth, you have periods of fast growth going maybe above the trend line, and then it recedes, then it expands, then it recedes. To stop firing, an explicit policy might be temporarily introduced or may be sufficient for the policymaker to generate the expectation that things will improve. Business cycle expansion definition. The definition used by economists differs. That's the month when the economy transitions from the contraction phase to the expansion phase. On a price chart, a trough looks like the bottom half of the letter “o.” Contraction. 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 NBER website lists the peaks and troughs in economic activity starting with the December 1854 trough. How to say trough. 3. In June 2009, it bottomed out at $14.36 trillion. 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. 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. That's the month when the economy transitions from the contraction phase to the expansion phase. Permission to copy is granted, provided attribution of source is given. Learn more. A gutter under the edge of a roof for carrying off rainwater. An economic trough occurs after an expansion. This date marked the official end of the Great Recession, which began following the economic peak reached in Dec. 2007. Economic Trough. The period when a bear market is ending and prices begin to rise. The business cycle is the natural expansion and contraction of a country’s GDP that occurs over time. The opposite of peak in a graph – the lowest part of the line on a graph, between where it falls and rises. 2. Earlier, the pace of degradation was reduced, later employment starts increasing. Another word for trough. Some horses were drinking at a trough. Trough (economics), the lowest turning point of a business cycle; as metaphor for political corruption, in the contexts of crony capitalism, nepotism, and public economics; Other uses. Business Cycle Definition. The term ‘peak-to-trough’ is sometimes used for house prices, industrial output, commercial property, and other sectors of the economy. Peak. [ + in] American bank shares have risen by 60% since their trough last October. In the main it is a broad trough, wider towards the north than towards the south, and unsymmetrical, Hudson Bay occupying much of its north-eastern part, while to the west broad plains rise gradually to the foot-hills of the Rocky Mountains, the eastern member of … Economists say that the business cycle goes through four main stages: 1. An expansion is characterized by increasing employment, economic growth, and upward pressure on prices. 7. 4. Enrich your vocabulary with the English Definition dictionary eat or drink. ( trɒf) n. 1. a narrow open container, esp one in which food or water for animals is put. Inflation fell to a trough of 3. Business Cycle is defined as a series of repetitive upward and downward growth cycles in the pace of the company or economic activities of a country and guides the policymakers in the decision-making process. Looking back afterwards you will see that this was not a terminal trough in your career. Income, employment, output, price level, etc. At the end of 2007, the U.S. GDP reached an all-time high of $14.99 trillion. Definition of trough in the Definitions.net dictionary. A period of expansion ensued, with the GDP eventually surpassing its 2007 high, reaching $15.02 trillion by Sept. 2011. Listen to the audio pronunciation in the Cambridge English Dictionary. Trough definition, a long, narrow, open receptacle, usually boxlike in shape, used chiefly to hold water or food for animals. A long, narrow depression, as between waves or ridges. The business cycle's four phases can be so severe that they’re also called the boom and bust cycle. See More. In this situation, the low point of a business cycle looks like a trough or pit. A Depression is a long-lasting recessing. ; The slowing ceases at the trough and at this point the economy has hit a bottom from which the next phase of expansion and contraction will emerge. 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. A long, narrow open container that farm animals or working animals drink or eat out of. Between trough and peak, the economy is in an expansion. An economic recovery is a business cycle stage following a recession that is characterized by a sustained period of improving business activity. Depression or Trough: The depression or trough is the bottom of a cycle where eco­nomic activity remains at a highly low level. 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). Market Business News - The latest business news. 2. Economicdecisions 1 expansion or boom. Trough (economics), the lowest turning point of a business cycle; Trough (food) or manger, a container for animal feed; Watering trough, a receptacle of drinking water for domestic and non-domestic livestock – Peak: this occurs just before GDP growth starts to decline. The definition used by economists differs. A narrow, elongated region of relatively low atmospheric pressure occurring at the ground surface or in the upper atmosphere, and often associated with a front. trough /trɒf $ trɒːf/ noun [ countable] 1 container a long narrow open container that holds water or food for animals a horse trough 2 low point a short period of low activity, low prices etc OPP peak trough of The graph showed peaks and troughs of activity. This graph is the key to understanding the economics of a SaaS business. ; The slowing ceases at the trough and at this point the economy has hit a bottom from which the next phase of expansion and contraction will emerge. A trough is also called a valley. An economic trough occurred in June 2009. more Economic Recovery Definition Economists use monthly business cycle peaks and troughs designated by the National Bureau of Economic Research (NBER) to define periods of expansion and contractions. Economists use several metrics to track the economic cycle throughout its various phases. Listen to the audio pronunciation in the Cambridge English Dictionary. 4. countable noun Part of business cycle with decreasing consumer purchases and increasing unemployment. It then fell steadily for the next year and a half, a period of severe economic contraction. 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. 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. Trough Definition. Incomes and wages are also indicators for where the economy stands in the business cycle. 3 waves the hollow area between two waves 4 weather technical 6. any of several similarly shaped receptacles used for various commercial or … Information and translations of trough in the most comprehensive dictionary definitions resource on the web. Technical traders also sometimes refer to swing lows as troughs, and swing highs as peaks. Troughs are important as they mark a positive turning point for the economy. more. As the economic indicators contract, the economy is in a contraction phase. See more. How to say trough. Looking back afterwards you will see that this was not a terminal trough in your career. Graph, shows how GDP rises and falls over time the surface of the Great recession, recovery, began. Excess cash on the web enrich your vocabulary with the December 1854 trough the hollow area between waves or.. 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