China’s recent slowdown can be termed as:
Options
APeak
BTrough
CSlowdown
DContraction
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Business CyclesPYQ - Dec 2021Question 89 of 20
All Questions Correct Answer
✅ Option c — Slowdown
All Options:
- APeak
- BTrough
- CSlowdown
- DContraction
Detailed Solution & Explanation
To understand China's recent slowdown, we need to analyze the terms given in the options.
• The term slowdown refers to a decrease in the rate of growth of an economy, but the economy is still growing.
• This concept is related to the business cycle, which is a part of business economics that studies the fluctuations in economic activity.
• A slowdown is different from a contraction, where the economy actually shrinks.
• In the context of China's recent economic situation, the country's growth rate has decreased, but it is still growing, which means it is experiencing a slowdown.
The correct answer is slowdown because it accurately describes a situation where the economy is still growing, but at a slower rate.
• Option peak is incorrect because it refers to the highest point in the business cycle, which is not relevant to China's current situation.
• Option trough is also incorrect because it refers to the lowest point in the business cycle, which is typically associated with a contraction, not a slowdown.
About This Chapter: Business Cycles
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Phases, Features, Causes
Business Cycles describe the recurring fluctuations in economic activity — Expansion, Peak, Recession, and Trough. This chapter covers the phases, features, and causes of business cycles, along with theories explaining why economies go through regular boom-bust patterns.
View Official ICAI SyllabusExam Strategy Tip
This is a lower-weightage chapter but easy to score. Focus on memorizing the four phases and their characteristics. Questions are usually straightforward.
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