ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A peak is the highest point of a business cycle and is followed by a contraction and eventual trough. Peaks are called after the fact once economic indicators have confirmed that contraction has set in and isn’t simply noise.

Detailed explanation-2: -Peak. The peak phase follows the expansion in a business cycle. The peak of the business cycle is the instance right before key economic indicators start to fall. At this time, prices are at their highest, and the economy can “overheat, ” meaning businesses can no longer satisfy consumer demands.

Detailed explanation-3: -Peak. After rapid expansion, a business cycle hits its peak and reaches maximum growth. Costs and income are at their highest and the economy adjusts for the drop.

Detailed explanation-4: -The highest point of the economy, before the recession begins, is called the peak; conversely, the lowest point of a recession, before a recovery begins, is called the trough. Thus, a recession lasts from peak to trough, and an economic upswing runs from trough to peak.

Detailed explanation-5: -In a business cycle, a peak is the highest point that occurs between the close of an economic boom and the beginning of a downturn. The final month before numerous important economic indicators, such as employment and new housing starts, start to decline, is referred to be the cycle’s peak.