The Single Best Indicator of a Recession Is

question 292

Multiple Choice

The single best indicator of a recession is:

• A) negative real GDP growth.
• B) negative nominal GDP growth.
• C) increasing unemployment.
• D) falling prices.

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Definitions:

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Coupon Rate

The coupon rate is the annual interest rate paid by a bond relative to its face value, expressed as a percentage.

Principal Amount

The initial size of a loan or bond or the amount of money invested, excluding any interest or dividends.

Coupon Rate

The interest rate stated on a bond or fixed-income security, representing the annual payout as a percentage of the bond's face value.