**Question:**Which of the following is associated with peaks in the business cycle?a. relatively low levels of unemploymentb. depressionsc. recessionsd. relatively high levels of unemployment**Explanation:**In the context of the business cycle, "peaks" typically refer to periods of economic prosperity, where economic indicators such as GDP are at high levels. Let's break down the options:- **a. Relatively low levels of unemployment**: This is commonly associated with economic peaks, as businesses are thriving and hiring more employees, reducing unemployment rates. - **b. Depressions**: This refers to a prolonged period of economic downturn and is not typically associated with business cycle peaks. - **c. Recessions**: This represents a decline in economic activity and is not associated with the peaks of a business cycle. - **d. Relatively high levels of unemployment**: More commonly associated with economic downturns, not peaks.Thus, during peaks in the business cycle, relatively low levels of unemployment are most typically observed.

Answered: **Question:** Which of the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A business cycle is a wave like fluctuation in the economy and the wave like fluctuation will have consecutive ups and downs in the economy. The Ups in the economy indicates the economic recovery and the peak point of the upward movement is known as the economic boom or prosperity. On the other hand, the downward movement following the economic boom is known as the recession and the lowest point of recession is known as the economic depression. The economy will go through these stages under a business cycle.