A business cycle peak is a
A) small positive deviation from trend in real GDP.
B) relatively large positive deviation from trend in real GDP.
C) small negative deviation from trend in real GDP.
D) relatively large negative deviation from trend in real GDP.
E) minimum deviation from trend in real GDP.

Question

Quizplus · Accepted Answer

A business cycle peak is a relatively large positive deviation from trend in real GDP, representing the highest point in the economic cycle before it begins to decline. This is typically associated with a high level of economic activity, low unemployment, and potentially, inflationary pressures.

A Business Cycle Peak Is a