Imagine that you just saw a headline on a news web site that read “High Inflation Could Be Ending: Fed Takes Strong Action.” The nation is most likely in which part of the Business Cycle?

recession.

expansion.

a peak.

a trough.

Question

Imagine that you just saw a headline on a news web site that read “High Inflation Could Be Ending: Fed Takes Strong Action.” The nation is most likely in which part of the Business Cycle?

recession.

expansion.

a peak.

a trough.

anonymous · Answer

Erika,  The answer s eems most likely to be "a peak" as it says "high inflation could be ending".  I have no idea what they mean by Fed takes strong action, as in the case of a PEAK it would be on the side lines.   Now if the answer is a "recession" then the Fed would be lower interest rates by expanding the money supply,    wnw

anonymous · Answer

if some country talks about high inflation could be ending, and FED or the central bank of the country takes the strong action. it sounds that a strong action is always needed when we are in tough situations...if we are in expansion situation, we will be taking a strategic actions...So the answer will be the a " tough  business cycle."