Question

Imagine you read an article that says, “economists agree we have seen the worst of the inflation rate impact and expect it to lower very soon”. The economy is likely in
A.) contraction
B.) expansion
C.) a peak
D.) a trough

Answer 1

Option C. It is a peak, when the economy reaches the peak during a cycle and the productive capacity has been fully used and the deterioration of the growth rate begins, prices start to rise and companies begin to fall and inflation occurs that negatively affects the economy of companies and the national economy and economic activity is high, placing itself at the peak to wait again for its decline and stability.