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

It would be a peak, since inflation would be at it's highest, about to recide. 

If it were a recession, inflation would start to fall, or recide.

anonymous · Answer

it would be at its peak as inflation is present mostly when their is a higher AD