a peak in the business cycle

Expert Solution

The word "business cycle" (or economic cycle or boom-bust cycle) refers to changes in demand, trade, and general economic activity across the entire economy. From a conceptual viewpoint, the business cycle is the upward and downward movement of GDP (gross domestic product) levels and refers to the duration of expansions and contractions in the level of economic activity (market fluctuations) around a long-term trend of growth.

The economy can be said to be "overheated" at the height of the business cycle. Despite hiring additional staff, Normal Maintenance's owners and crews are working seven days a week and still can not keep up with demand. We can not work any harder or more quickly. The workers are therefore tired, and the quality of their work is starting to decline. Customers leave messages asking for jobs and facilities, but the owner is so busy not answering telephone calls. Jobs get started and finished late as teams are struggling to cover multiple job sites.

As a result, customer complaints are on the rise and the owner fears about the company's long-term image. Neither the company nor the economy can maintain this level of activity, and despite the fact that Normal Maintenance is making big money, everyone is willing to let things up a bit.

Rahul Sunny answered 1 year ago

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