Which Statement Is TRUE About a Recession

question 129

Multiple Choice

Which statement is TRUE about a recession?

• A) It can be concentrated only in a single geographic area, but it must be widespread across many sectors of the economy within that area.
• B) It must be a significant decline in economic activity that lasts for at least three years in a row.
• C) It is a significant decline in economic activity lasting more than a few months and must be widespread geographically.
• D) It can be a significant and widespread decline lasting only a month or two.

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Definitions:

Present Value

Today's value of money or cash flows to be received in the future, determined by applying a given rate of return.

Future Value

The value of a current asset at a specified date in the future, calculated using estimated rates of growth or return.

Growth Rate

The measure of the increase in size, number, value, or strength of a business or a segment of its operations over a specific period.

Earnings Per Share

A measure of a company's profitability, calculated as the company's net income divided by the total number of outstanding shares.