When the GDP is declining and the trend stops, leading to economic activity rising, what is this called?

The correct answer is derived from the concepts of economic cycles. When the Gross Domestic Product (GDP) is declining, the economy is typically in a recession. The lowest point in this decline is referred to as a trough. A trough signifies the end of the declining phase and the point at which economic activity begins to rise again, signaling the potential start of recovery and expansion.

In contrast, the other terms like peak, cycle, and gap relate to different aspects of economic activity. A peak refers to the high point of economic activity before a downturn, while a cycle refers to the complete movement of the economy through expansion and contraction phases. A gap can refer to differences in economic measures but isn’t specifically tied to the transition from decline to recovery. Therefore, the term that best describes the scenario of a declining GDP stopping and then leading to a rise in economic activity is the trough, marking the transition back toward growth.