Peak

In the context of business cycles, a "peak" refers to the high point in economic activity before a downturn. At this stage, a country's economy is performing at its best, with high production, low unemployment, and increased consumer spending. However, this level of activity is not sustainable, and it often leads to a decline as factors like inflation, rising interest rates, or decreased demand can trigger a recession. Recognizing a peak helps businesses and policymakers prepare for changes in the economy, aiming for stability and recovery when a downturn occurs.