An Economic Expansion Rather Than a Recession Occurs

question 42

Multiple Choice

An economic expansion rather than a recession occurs

• A)when growth in real GDP is positive.
• B)when the unemployment rate is not changing.
• C)when the government budget is balanced.
• D)when the unemployment rate falls below 5 per cent.

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Definitions:

Discounted

A reduced price from the standard cost of goods or services, often used as a sales promotion.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Discounted Cash Flow (DCF) Analysis

A financial valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Discount Factor

A multiplier used in discounted cash flow analysis to present value future cash flows.