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The highest point of the economy, before a recession begins, is called the:
AA baseline
BThe peak
CThe trough
DA plateau
Answer & Solution
Correct answer: B. The peak
1. The turning points of the cycle each have a name.
2. The economy rises and then falls over time.
3. The highest point of the economy, before the recession begins, is the peak.
4. The lowest point before a recovery is the trough.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_
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