BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall.

Detailed explanation-2: -The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion. After that point, employment numbers and housing starts begin to decline, leading to a contractionary phase.

Detailed explanation-3: -Phase 1: Expansion. To increase production, businesses hire more workers or invest capital to expand their physical infrastructure and operations. Generally, corporate profits begin to rise along with stock prices. Gross domestic product (GDP) also begins rising as the economy gets its “boom” cycle underway.

Detailed explanation-4: -What Are the Stages of the Business Cycle? In general, the business cycle consists of four distinct phases: expansion; peak; contraction; and trough.