Question

In the business cycle, what always follows immediately after a peak? A) contraction B) depression C) expansion D) trough

Answer 1

In the business cycle, what follows immediately after a peak is the Contraction phase.

During this period, economic growth weakens, it is what economists call a recession.  The unemployment rate begins to rise. Businesses wait to hire new workers until they are sure the recession is over.

Answer 2

In the business cycle, what always follows immediately after a peak?                      

   A) contraction