ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expansion: Expansion is characterized by employment increase, Economic growth, and rise in prices. Peak: Peak is considered to be the highest point in the Business Cycle.

Detailed explanation-2: -A peak is the highest point of a business cycle and is followed by a contraction and eventual trough.

Detailed explanation-3: -A peak is the highest point of the business cycle, when the economy is producing at maximum allowable output, employment is at or above full employment, and inflationary pressures on prices are evident.

Detailed explanation-4: -The highest point of the economy, before a recession begins, is called the peak; conversely, the lowest point of a recession, before a recovery begins, is called the trough.

Detailed explanation-5: -Phase 2: Peak. At this stage, the economy reaches a maximum rate of growth. As consumer demand rises, there’s a point at which businesses may no longer be able to ramp up production and supply to match the increasing demand.