ECONOMICS (CBSE/UGC NET)

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: -An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.

Detailed explanation-3: -A peak marks a cyclical high point in a time series, although there may be higher points in the time series’ history. A trough marks a cyclical low point in a time series, although there may be lower points in the time series’ history. A contraction in a time series is the period of decline from a peak to a trough.

Detailed explanation-4: -The trough is the bottom of the recession period, unemployment is at its highest, inflation is low. 4. expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.