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steposvetlana [31]
3 years ago
14

Income reaches the highest level at the _ point of the business cycle.

History
2 answers:
saveliy_v [14]3 years ago
7 0

Income reaches the highest level at the peak point of the business cycle.

The highest point of the business cycle is called peak. It follows the boom, (a protracted period in which the economy activity increases called upturn), and it is followed by a downturn, during which the amount of economy activity decreases.

So, during a peak, incomes, purchases, investment, spending and employment reach their highest point since the economy has expanded.

Kryger [21]3 years ago
5 0

According to the question, income reaches its highest level at the peak point of the business cycle.

When a business cycle reaches highest point, it is called peak. It is a period of boom, also known as upswing, upturn and growth period.  

This also implies that if a business cycle reaches its peak point, the purchase, spending, and investment; employment and incomes would reach their highest point.

<h3>Further Explanation</h3>

Peak is described as the highest turning point between the end of an economic expansion and a start of a contraction within a business cycle. The peak of a cycle is the month before major key economic indicators. Such indicators could be when employment and new housing starts, begin to fall. In an economy, it is the period when the GDP level is at the highest.  

Peak, typically, is the top level of cycle.  It is a term that originates from physics, where it is defined as the maximum point in a wave.  

However, in economics, it indicates high point in a business. Financial markets and economists have experienced different cycles of expansion that shows peak growth, minimum growth including contraption. The first point of circle where growth reached its minimum is known as the peak stage.

LEARN MORE:

  • business cycle brainly.com/question/12616698
  • business cycle brainly.com/question/4198668

KEYWORDS:

  • peak
  • economy
  • business cycle
  • highest level
  • markets
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