Turning points in business cycles occur when
A)a new business cycle is initiated at the trough.
B)the economy hits the peak or trough in the business cycle.
C)the business cycle begins to follow a new pattern that differs from previous business cycles.
D)a new business cycle is initiated at the peak.

Question

Quizplus · Accepted Answer

Turning points in business cycles refer to the peak or trough of the cycle. This is when the economy shifts from expansion to contraction or vice versa. Thus, option B is the correct answer. The other options are incorrect because they do not capture the essence of turning points in business cycles.

Turning Points in Business Cycles Occur When