What phase of the business cycle represents the bottom of the economy's decline?

The phase referred to as the bottom of the economy's decline is known as the trough. This stage signifies the lowest point of the business cycle, where economic activity is at its weakest, leading to low consumer confidence, high unemployment rates, and reduced spending. It is the point at which the economy transitions from contraction to expansion, indicating the end of a recession and signaling that recovery could begin. Identifying the trough is important for policymakers and businesses, as it provides insights into when to implement strategies for growth and how to stimulate economic activity.

The other phases do not represent this bottom point; expansion indicates a period of growth, peak represents the height of economic activity, and contraction signifies a decline in economic activity but does not denote the lowest point reached.