Asked by David Tovar on Apr 26, 2024
Verified
A peak is
A) a transition from an expansion in the business cycle to the start of a contraction.
B) a transition from a contraction in the business cycle to the start of an expansion.
C) a depression that lasts more than three years.
D) only a feature of geography and not an investment term.
E) None of the options are correct.
Peak
The transition from the end of an expansion to the start of a contraction.
Business Cycle
The fluctuation in economic activity that an economy experiences over a period, characterized by expansion and contraction phases.
- Examine the stages of the business cycle and their impacts on the economy.
Verified Answer
KF
Keili FullingtonMay 02, 2024
Final Answer :
A
Explanation :
A peak in the context of the business cycle represents the point at which an expansion transitions into a contraction. This is the highest point of economic activity before it begins to decrease.
Learning Objectives
- Examine the stages of the business cycle and their impacts on the economy.