In 2007, the US manufacturing sector grew by nearly 4% compared to the previous year. Then the sector fell in 2008 and 2009, erasing the gains it had made. From the fourth quarter of 2008 (Oct-Dec 2008) through the third quarter of 2009 (Jul-Sept 2009), the US experienced negative GDP growth. US employment rates, which had risen during 2007, also fell during 2008 and 2009. Over those two years, close to 9,000,000 US jobs were lost. According to the passage, the year 2007 was a _ for the US economy. During 2008 and 2009, the US economy experienced a _.

Answers
PEAK
A RECESSION

An economic peak is a maximum point (an upper bound) in the business cycle. After a period of economic expansion, if a peak is reached, means that right after a recession period starts.

In this example from the US economy, 2007 is the last period in which there is positive growth (4%), and therefore it is the last period in which the economy is expanding. Subsequently, the domestic output starts to decrease (in 2008 and 2009) and therefore the economy has entered in a recession period. In between these two tendencies of expansion and then recession, there is necessarily a peak.

Tundexi Tundexi · Answer 2 · 2022-01-03T12:38:42+01:00

According to this passage, the year 2007 was a Peak period for the US economy and during 2008 and 2009, the US economy experienced a Recession period.

A business cycle refers to the cyclical upswings and downswings of an economy in terms of its output, employment, income, sales etc

The 4 stages of business cycle includes:

expansion
peak
contraction
trough

An economic peak is when there is maximum point (an upper bound) in the business cycle.

After the period of economic expansion, if a peak is reached, then, its means that a recession period starts.

In conclusion, the year 2007 was a Peak period for the US economy and during 2008 and 2009, the US economy experienced a Recession period.