Question

06.06 segment exam A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle?

Answer 1

Answer:

Year 2006 would be consider the of this cycle.

Explanation:

A peak date in a given period  is the highest point between the end of an economic expansion and the start of a contraction. The peak of the cycle refers to the year month before several key economic indicators, such as employment and new housing starts, begin to fall and interest rates begin to rise/increase.

So in the above question 2006 is peak date as in 2007 economic contraction took place,