ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Production is high, unemployment is high, price levels are high
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Production is low, unemployment is low, price levels are low
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Production is high, unemployment is low, price levels are high
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Production is low, unemployment is high, price levels are low
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Detailed explanation-1: -the turning point in the business cycle between an expansion and a contraction; during a peak in the business cycle, output has stopped increasing and begins to decrease.
Detailed explanation-2: -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-3: -A peak is the top . of a cycle. The peak is characterised by an allround optimism in the economy-income, employment, output, and price level tend to rise. Meanwhile, a rise in aggregate demand and cost leads to a rise in both investment and price level.
Detailed explanation-4: -Answer and Explanation: The true statement about business cycles is c. The loss of potential output can never be realized.