Which of the following is associated with peaks in the business cycle?
A) Relatively high levels of unemployment.
B) Recessions.
C) Relatively low levels of unemployment.
D) Both answers a. and b. above are correct.

Question

Which of the following is associated with peaks in the business cycle?
A) ​Relatively high levels of unemployment.
B) ​Recessions.
C) ​Relatively low levels of unemployment.
D) ​Both answers a. and b. above are correct.​

Quizplus · Accepted Answer

Peaks in the business cycle are associated with relatively low levels of unemployment as the economy is performing well and businesses are hiring more workers. Option A is incorrect as high levels of unemployment are a characteristic of a recession, which is associated with troughs in the business cycle. Option B is also incorrect as recessions are associated with troughs, not peaks. Option D is incorrect as only option C is correct.

Which of the Following Is Associated with Peaks in the Business