ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In the expansionary phase, the economy experiences growth over two or more consecutive quarters. Interest rates are typically lower, employment rates rise, and consumer confidence strengthens. The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion.

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: -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.

Detailed explanation-4: -The economy then reaches a saturation point, or peak, which is the second stage of the business cycle. The maximum limit of growth is attained. The economic indicators do not grow further and are at their highest. Prices are at their peak.

Detailed explanation-5: -Inflation decreases during recessions and increases during expansions (recoveries).