A peak is the highest point of the business cycle, where the economy has reached its maximum level of growth and output. It marks the transition from an expansion phase to a contraction phase, where economic activity slows down and unemployment starts to increase.

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A Peak Is

Question 4

Multiple Choice

A peak is

A) a transition from an expansion in the business cycle to the start of a contraction.
B) a transition from a contraction in the business cycle to the start of an expansion.
C) a depression that lasts more than three years.
D) only a feature of geography and not an investment term.

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