Which of the Following Is True of a Recession

question 150

Multiple Choice

Which of the following is true of a recession?

• A)It is typically accompanied by inflation and investment growth.
• B)It lasts for more than two years on an average.
• C)It is typically longer than periods of expansion.
• D)It begins after an expansion has peaked.
• E)It continues as long as actual output exceeds the potential output.

---

Definitions:

Inventory Investment

The purchase of goods and materials for future sale or use, regarded as a form of investment by a company.

GDP

Gross Domestic Product, which measures the total value of all goods and services produced within a country’s borders in a specific time period.

Partnership

A lawful business structure operated by two or more people who jointly manage and divide profits.

Limited Liability

A legal structure that limits the personal financial responsibility of shareholders for the debts or actions of a corporation to the amount they invested.