A peak in the business cycle
A) occurs when the unemployment rate is its greatest.
B) occurs when the inﬂation rate is its lowest.
C) is a temporary maximum point.
D) is a temporary minimum point.

Question

Quizplus · Accepted Answer

A peak in the business cycle is a temporary maximum point where economic growth and activity reach their highest level before starting to decline. It is not related to unemployment or inflation rates, therefore options A and B are incorrect. Option D is also incorrect as a temporary minimum point is known as a trough in the business cycle.

A Peak in the Business Cycle