The Phase of the Business Cycle Where Economic Activity Is

question 123

Multiple Choice

The phase of the business cycle where economic activity is decreasing is called

• A) an economic trough.
• B) the long-run trend of gross domestic product (GDP).
• C) an economic expansion.
• D) an economic contraction.
• E) an economic peak.

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Definitions:

Fourth Market

A market where institutional investors trade securities directly among themselves without the use of a broker.

Difference

The result obtained when one quantity is subtracted from another.

Common Stock

A type of equity ownership in corporations, where shareholders have voting rights and potentially dividends.

Primary Market

The financial market where new securities are issued and sold for the first time, often via initial public offerings (IPOs).