13
QuizMultiple Choice

Macroeconomics — Test

Question 13 • Economics

Which of the is a characteristic of prosperity in the peak phase of the business cycle?

Answer
A
high levels of production
B
reduced incomes
C
ambivalence about the economy
D
stagnant prices

Explanation

At the peak of the business cycle, economic activity is at a high point. Businesses produce a large volume of goods and services, so high levels of production are characteristic of prosperity. Reduced incomes are more commonly associated with a downturn.

AI-written and checked against the verified answer.

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