Which of the following best apply to when a peak occurs in a business cycle?
A) Inflation is falling.
B) Unemployment is at its lowest.
C) GDP growth is at its highest in the business cycle.
D) Interest rates are low.

Question

Quizplus · Accepted Answer

A peak in the business cycle represents the highest level of economic activity, so GDP growth is at its highest during this period. Inflation may still be high and interest rates may be rising as a result of increased demand and spending. Unemployment may be low, but it typically begins to rise as the economy reaches its peak and begins to slow down.

Which of the Following Best Apply to When a Peak