Sample Exam问题 economic, following, positive, recent, release

wingedseeds

2013 sample exam,

The most recent economic data release indicates the following:
. Capital spending is expanding rapidly but the growth rate of spending has begun to slow down and
. The rate of hiring has slowed but the unemployment rate continues to fall
The economy is most likely in which of the following phases?

A. Peak
B. Contraction
C. Late expansion

Answer is A

为什么不选C? 如果peak是指最高点的话，那么growth rate should be negative, changing from positive to negative. 感觉书里包括题目中都介绍peak不是一个点的概念,和through不一样，peak是一段，可是这是为什么啊？
谢谢。

WGLJZJTQGJKMJ

I think you are right about the difference between peak and trough.

However, on the left half of the peak, economic growth approaches zero but still at a positive rate.

Compared with expansion which always enjoys a higher growth rate, peak is a transitory period that is charaterized by slowness in GDP growth rate, spending, investments and hiring.

Therefore, the expression "growth rate of spending has begun to slow down" and "the rate of hiring has slowed" best comply with peak.

BTW, no "late expansion" can be found by classfications of economic cycle

WGLJZJTQGJKMJ

I hope the following chart makes more sense to you.

下载 (22.88 KB)
Economic Cycle

2013-11-22 19:56