For the past several months, per capita output has increased at a slower and slower rate. Over the same period, the unemployment rate has been falling, but it appears to have leveled off and may soon rise. Where in the business cycle is the economy?

Question

Quizplus · Accepted Answer

The economy is likely at a peak in the business cycle. This is characterized by slowing growth in output and a leveling off or potential increase in unemployment, indicating that the economy may soon enter a recession phase.

For the Past Several Months, Per Capita Output Has Increased