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A student finds two ancient meters with numbered scales but no unit markings. He thinks that one is an ammeter and one is a voltmeter but doesn't know which is which. He measures the resistance of each, finding that meter A has a resistance of 5000 ohms and meter B has a resistance of 0.10 ohm. He can conclude that
Average Rate of Return
A calculation used to measure the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.
Recession
A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Purchasing Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to equalize purchasing power by taking into account inflation rates and cost of living.
Exchange Rate
The worth of one currency relative to another for conversion purposes, establishing the amount of one currency that can be swapped for another.
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