In general, during the business cycle, when economic activity is peaking:
A)interest rates begin to creep higher
B)unemployment levels are low
C)inflation begins to edge higher
D)all of the above
E)not enough information to tell Same as #68

Question

Quizplus · Accepted Answer

During the peak of the business cycle, all three factors mentioned in options A, B, and C tend to happen. Interest rates increase because of increased demand for credit, unemployment levels are typically low due to increased economic activity, and inflation tends to rise as the demand for goods and services puts upward pressure on prices.

In General, During the Business Cycle, When Economic Activity Is