PRC-3 · Chapter 15 · Question 13 of 44
An economy is running at maximum capacity. Unemployment is virtually zero, factories are running 24/7, and intense demand is pushing prices up rapidly. Which phase of the business cycle is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Peak / Boom
Explanation
The Peak (or Boom) is the highest point of the business cycle, marked by full resource utilization, high confidence, and often strong inflationary pressures.
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