When aggregate economic activity is declining the economy is said to be in ........

Economics- Phase (I & II) Business Cycles

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When aggregate economic activity is declining, the economy is said to be in _____

contraction

an expansion

a trough

a turning point

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Explanation:

A contraction generally occurs after the business cycle peaks, but before it becomes a trough. According to most economists, when a country's real gross domestic product (GDP)—the most-watched indicator of economic contraction—has declined for two or more consecutive quarters, then a contraction has occurred.