When looking at the phases of a business cycle, the highest point is called a ________ and the lowest point is called a __________.
A)Trough; peak
B)Peak; trough
C)Economic fluctuations; circular flow
D)Hyperinflation; depression

Question

Quizplus · Accepted Answer

When looking at the phases of a business cycle, the highest point on the cycle is called a peak and the lowest point is called a trough (note that answer A is backwards).
Key Takeaway: When moving from the peak to the trough, economists say that the economy is experiencing a recession. When moving from a trough to a peak, economists say that the economy is experiencing a boom (or an expansion) because the GDP is increasing.

When Looking at the Phases of a Business Cycle, the Highest