A business cycle peak is a
A)minimum deviation from trend in real GDP.
B)relatively large negative deviation from trend in real GDP.
C)relatively large positive deviation from trend in real GDP.
D)small negative deviation from trend in real GDP.
E)small positive deviation from trend in real GDP.

Question

Quizplus · Accepted Answer

A business cycle peak is a point in time when the economy has reached a relatively high positive deviation from its long-term trend in real GDP. This means that the economy has been growing above its potential and is expected to slow down or even contract in the near future.

A Business Cycle Peak Is a