Question

A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle? A. 1980 B. 1990 C. 2001 D. 2007

Answer 1

In 2007, an economic crisis caused prices to fall and the peak is also 2007 as it was the year when peak is at highest

Answer 2

The correct option to this question is D. 2007. In 2007 the economy was in a boom, and the highest point in the businees cycle is a peak and a peak is always followed by a downturn, during which the amount of economic activity decreases. That is the reason why following the 2007 peak, the economic crisis caused prices to fall.