The phase of the business cycle in which output is highest relative to its potential level is the
A) peak.
B) trough.
C) recession.
D) expansion.
E) trend.

Question

Quizplus · Accepted Answer

The peak phase of the business cycle represents the point at which the economy is operating at its maximum allowable output, where output is highest relative to its potential level before it begins to contract.

The Phase of the Business Cycle in Which Output Is