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Solution:
(a) Contraction. When aggregate economic activity, such as gross domestic product (GDP), employment, and income, is declining, the economy is said to be in a contraction.
This is typically characterized by a slowdown in economic growth, increased unemployment, and decreased consumer and business spending.
It is the opposite of an expansion, which is a period of increasing economic activity.
A trough is the lowest point of a contraction, where the economy begins to recover and transition towards an expansion.
A turning point is a more general term that can refer to any significant shift or change in economic activity or trends.
Correct option is (a)