Trough a period of time when the level of something is low, especially a time when a business or the economy is bit growing; a short period of low activity
A trough is charecterized by high unemployment and a level of demand that is low in relation to the economy’s capacity to produce. There is thus a substantial amount of unused productive capacity. Businessprofits are low; for some individual companies, they are negative. Confidence about economic prospects in the immediate future is lacking, and, as a result, many firms are unwilling to risk making new investment.
Recovery
The charecteristics of a recovery, or expenstion, are many : run-down equipment is replaced; employment, income, and consumer spending all begin to rise; and expectation become more favorable as a result of increases in production, sales, and profits. investment that once seemed risky may be undertaken as the climate of business opinion starts too change from one of pessimism to one of optimism. As demand rises, production can be increased with relative ease merely by reemploying the existing unused capacity and unemployed labor.
Peak
A peak is the top of the cycle. At the peak, existing capacity is used to a high degree; labor shortages may develop, particularly in categories of key skills; and shortages of raw materials are likely. As shortages develop in more and more markets, a situation of general excess demand develop. Costs rise, but because prices rise also, business remains profitable.