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.

Question

Quizplus · Accepted Answer

A business cycle peak is the highest point of economic activity before a recession. It represents a relatively large positive deviation from trend in real GDP, as the economy has experienced a period of strong growth and expansion.

A Business Cycle Peak Is a