ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -1. A peak is when business activity reaches a temporary maximum, unemployment is low, inflation high. 2. A recession is a decline in total output, unemployment rises and inflation falls.

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 recession is when output has fallen for a period of time and the unemployment rate increases. A depression is a very severe recession. There is a large contraction in the economy, and the unemployment rate is likely to be at a very high level.

Detailed explanation-4: -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.