A period of economic growth that follows the lowest point in a business cycle is called a(n) _____.A.peakB.contractionC.expansionD.trough

Break Down the Problem

1. Identify the key terms in the question: "economic growth", "lowest point", "business cycle".
2. Understand the definitions of the terms used in the options provided.

Relevant Concepts

1. Peak: The highest point in a business cycle before a downturn.
2. Contraction: A phase of economic decline.
3. Expansion: A period of economic growth following a recession or the lowest point in a business cycle.
4. Trough: The lowest point in a business cycle.

Analysis and Detail

• The question states that we are looking for a term related to a period of growth that follows the lowest point. By definition, the period of economic growth that follows a trough is called an expansion.

Verify and Summarize

• To confirm, we note that the cycle proceeds from trough (lowest point) to expansion (growth), then to peak (highest point), followed by contraction (decline).

Final Answer

The answer is C. expansion.