At the "peak" of the economic growth cycle, which statement is true?

At the peak of the economic growth cycle, firms are fully utilizing their production capacity. This occurs because, at this stage, the economy is operating at or near its maximum potential output. Businesses experience high demand for their goods and services, leading them to employ their resources, including labor and capital, to the fullest extent possible to meet this demand.

During the peak, GDP reaches its highest level in the business cycle, reflecting strong economic activity and growth. Consequently, unemployment tends to be low, as firms are hiring to keep up with production demands, rather than rising as suggested by another option. Therefore, the scenario where economic output is declining or where GDP is at its lowest point does not apply at the peak, as these conditions characterize different phases of the economic cycle, such as contraction or recession. The peak phase is indicative of a robust economy where utilization rates are maximized.