Question

For the past several months, per capita output has increased at a slower and slower rate. Over the same period, the unemployment rate has been falling, but it appears that both have leveled off. Where in the business cycle is the economy?a. the business cycle peak
b. a recession
c. the business-cycle trough
d. an expansion

Answer 1

Answer:

A. Business Cycle Peak

Explanation:

Business cycle peak point is the highest point of the business cycle when the economy is producing at the maximum allowable output, employment is at "full employment" and inflationary pressures on prices are evident. This also the point where the economy's GDP is at its highest level. There are many other key economic indicators, but it all points to the positive aspect of those key indicators reaching their highest level.

In summary, it means an economy has reached the highest level of production in recent times.