At the peak of the business cycle, the economy is typically operating
A) at its capacity.
B) above capacity.
C) below capacity.
D) at its highest level ever.

Question

Quizplus · Accepted Answer

At the peak of the business cycle, the economy is typically operating at its capacity. This means that resources are fully employed and output is at the highest level possible without causing inflation.

At the Peak of the Business Cycle, the Economy Is