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First we need to choose an interval: Then we can say that a local maximum is the point where: The height of the function at a is greater than (or equal to) the height anywhere else in that interval. Or, more briefly: f(a) â¥ f(x) for all x in the interval. In other words, there is no height greater than f(a).
What is a 'Peak'. A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall. It is at this point real GDP spending in an economy is at its highest level.