PRC-3 · Chapter 15 · Question 3 of 44
During a specific phase of the business cycle, consumer demand is exceptionally high, unemployment is extremely low, and factories are running at maximum capacity, often causing inflation. This phase is called the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Peak / Boom
Explanation
The Peak or Boom is the highest point of the economic cycle, characterized by full capacity, low unemployment, and rising inflationary pressures.
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