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The peak and the trough are best described as the two:
AKinds of final good
BMeasures of inflation
CTurning points of the cycle
DLevels of the tax rate
Answer & Solution
Correct answer: C. Turning points of the cycle
1. The business cycle is defined by where it changes direction.
2. The highest point of the economy, before the recession begins, is the peak.
3. The lowest point of a recession, before a recovery begins, is the trough.
4. The movement from peak to trough and back is the business cycle.
5. So peak and trough are the turning points of that cycle.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_
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