ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bust
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Peak
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Recession
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Recovery
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Detailed explanation-1: -The lowest point on the business cycle is a trough, which is characterized by higher unemployment, lower availability of credit, and falling prices.
Detailed explanation-2: -It is at this point real GDP spending in an economy is at its highest level. The peak is the pinnacle of the business cycle and its opposite is the trough, which represents the lowest point in a business cycle.
Detailed explanation-3: -What it is: The peak phase is the highest point of the business cycle. It was a turning point after an economic expansion had slowed but before moving towards contraction. In the boom part, the economy is trying to reach its maximum limit, and inflationary pressure is high, leading to an overheated economy.
Detailed explanation-4: -A peak is when business activity reaches a temporary maximum, unemployment is low, inflation high. A recession is a decline in total output, unemployment rises and inflation falls. The trough is the bottom of the recession period, unemployment is at its highest, inflation is low. More items