The point on a business cycle when real GDP stops rising and begins falling is a(n):
A) peak.
B) trough.
C) expansion.
D) recession.

Name: The point on a business cycle when real GDP stops rising and begins falling is a(n): A) peak. B) trough. C) expansion. D) recession.
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Question

Quizplus · Accepted Answer

The peak is the highest point of the business cycle where the economy has reached its maximum level of output and growth. After the peak, the economy usually goes into a decline, marking the start of a recession.

The Point on a Business Cycle When Real GDP Stops