A cyclical peak or trough occurs when GDP:
A) Starts to deviate from a trend path.
B) Moves in coordinated ways.
C) Increases and decrease in a predictable manner over the economic cycle.
D) Is at the maximum deviation from the trend path in a business cycle.

Question

Quizplus · Accepted Answer

A cyclical peak or trough occurs when GDP is at the maximum deviation from the trend path in a business cycle. This means that the economy has reached either its highest point (peak) or its lowest point (trough) in the current cycle, and it will start to move in the opposite direction towards the next phase of the cycle.

A Cyclical Peak or Trough Occurs When GDP