What is a peak and trough in economics?
A peak marks a cyclical high point in a time series, although there may be higher points in the time series’ history. A trough marks a cyclical low point in a time series, although there may be lower points in the time series’ history. A contraction in a time series is the period of decline from a peak to a trough.
What is it called when the economy moves from a trough to a peak?
Expansion is the phase of the business cycle when the economy moves from a trough to a peak. Expansions last on average about four to five years but have been known to go on anywhere from 10 months to more than a decade.
What are the 4 stages of economy?
An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.
What is a peak economics?
A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak is the pinnacle of the business cycle and its opposite is the trough, which represents the lowest point in a business cycle.
What is a peak of economic activity called?
A peak of economic activity is called. recession.
What does trough mean in economics?
A trough is the stage of the economy’s business cycle that marks the end of a period of declining business activity and the transition to expansion. These increase during expansion, recede during contraction, and bottom out during a trough.
What is peak in economics?
A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall.
What is trough business cycle?
A trough is the stage of the economy’s business cycle that marks the end of a period of declining business activity and the transition to expansion. The business cycle is the upward and downward movement of gross domestic product and consists of recessions and expansions that end in peaks and troughs.
What are the characteristics of the peak phase?
The peak phase reflects the saturation of economic activity. The maximum possible growth is attained, and the economic growth indicators don’t grow further. The prices of products and services reach their peak. According to macroeconomists, the goal of the economy is to have a low unemployment rate.
What does a peak indicate?
Noun. summit, peak, pinnacle, climax, apex, acme, culmination mean the highest point attained or attainable.