A Peak in the Business Cycle

question 14

Multiple Choice

A peak in the business cycle

• A)occurs when the unemployment rate is its greatest.
• B)occurs when the inflation rate is its lowest.
• C)is a temporary maximum point.
• D)is a temporary minimum point.

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Definitions:

Indifference Curve

A graph showing different combinations of goods among which a consumer is indifferent.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Tangent

A line that touches a curve at a single point without crossing it.

Indifference Curves

Graphical representations in microeconomics illustrating different combinations of two goods that give a consumer equal satisfaction and utility.