Question

[True, False or Uncertain] A good thing about the peak of a business cycle is that economic growth tends to trend up after a peak.  

Indicate the best answer and then explain (if true why it is true; if false provide a counter-example)

Answer 1

False

A business cycle in simple terms descibe any economy production rise and fall of the output of good and services

It has generally 6 stages that are

Expansion, peak ,recession, depression,trough and recovery .

Peak is the second stage of the economy in which the economy is at its highest potential in terms of growth ,employment etc

From this point the economy start going into the recession phase

The best example of this is the UN United States stock market crash in the year when2008

When economy was at its full potential in terms of its employment,growth etc and after that stock market gets very low and economy went into recession

Hence it is a false statement