Which of the Following Is Correct Concerning Recessions

question 229

Multiple Choice

Which of the following is correct concerning recessions?

• A)They come at fairly regular and predictable intervals.
• B)They are associated with comparatively large increases in investment spending.
• C)They are any period when real GDP growth is less than average.
• D)They tend to be associated with rising unemployment rates.

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Definitions:

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient global production and trade.

Dumping

The practice of selling a product in a foreign market at a price lower than its domestic market or below its cost of production, often to increase market share or eliminate surplus.

Per Capita GDP

is a measure of the economic output of a country divided by its population, providing an average economic welfare indicator.

Trade Barriers

Measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.