For the past several months, per capita output has increased at a slower and slower rate. Over the same period, the unemployment rate has been falling, but it appears that both have leveled off. Where in the business cycle is the economy?
A) peak
B) recession
C) trough
D) expansion

Question

Quizplus · Accepted Answer

When per capita output increases at a slowing rate and both output and unemployment rates level off, it typically indicates the economy is at a peak. This is the point where expansion slows down and might turn into a recession.

For the Past Several Months, Per Capita Output Has Increased