Question

Loger's, a high-end apparel company in Brushlon, an Asian country, cuts back on production as consumers start turning to basic products such as food because of the economic downturn in the country. The company also lays off many of its employees to further cut down expenses. In the context of the business cycle, Brushlon is most likely going through a period of _______

Answer 1

Answer:

Trough

Explanation:

Trough

The business cycle has five phases: expansion, peak, contraction, trough, and recovery.

Trough is the crashing process of business contraction, or drop in transactions. In economic terms, it refers to a phase of the business cycle where transactions fall to the rock bottom (also know as bottoming), or where prices and jobs fall significantly before a rise.

Brushlon is most likely going through a period of trough since it is cutting back on production as consumers start turning to basic products such as food because of the economic downturn in the country. Moreover the company is also said to be laying off many of its employees to further cut down expenses.