Which term is used to describe the lowest point of economic activity in the business cycle?

The term "trough" is specifically used to describe the lowest point of economic activity in the business cycle. At this stage, economic indicators such as GDP, employment, and production are at their weakest. Following a trough, the economy typically begins to recover, entering into a phase of expansion. This concept is foundational in understanding the cyclical nature of economies, where periods of growth alternate with periods of decline. Recognizing the trough is crucial for businesses and policymakers as it informs decisions regarding investments, employment, and economic interventions.