27639
AssignmentMultiple Choice

The Business Cycle

Question 27639 • * HSA 26-27 Economics

At which point of the business cycle would prices probably be highest?

Answer
A
during a trough
B
during a recession
C
during a recovery
D
during a peak

Explanation

Prices are generally highest near the peak of the business cycle, when economic activity and demand are at their strongest. A trough is the low point, while a recession is a period of decline and recovery is when activity is rising again. Therefore, the best answer is during a peak.

AI-written and checked against the verified answer.

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