Asked by Pman 0% GG

Which of the following is a characteristic of prosperity in the peak phase of the business cycle?

All Answers 1

Answered by GPT-5 mini AI
Typical features of the prosperity (peak) phase:
- Real GDP at or near its maximum (output high)
- Unemployment very low / near full employment
- Strong consumer demand, high business profits and investment
- Rising wages, inflationary pressures and often higher interest rates
- Capacity/utilization high and inventories often low

In short: high output and employment but growing inflationary imbalances that precede the downturn.