The Typical Recession in the United States, If There Is

question 32

Multiple Choice

The typical recession in the United States, if there is such a thing,

• A) lasts for less than one year but costs roughly 10 percent of annual GDP.
• B) sees GDP fall 5 percent below its potential for an average of two years.
• C) lasts for almost exactly one year and costs roughly 10 percent of potential GDP.
• D) sees GDP fall 10 percent below its potential for an average of almost three years.
• E) none of the above.

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Definitions:

Plant Asset

A long-term tangible asset used in the operation of a business that is not intended for sale.

Book Value

The net value of a company's assets, subtracting liabilities from the total assets; also refers to the value of an asset as per accounting records.

Natural Resources

Materials or substances such as forests, minerals, and water that occur in nature and can be used for economic gain.

Standing Timber

Trees that are still standing and have not yet been harvested, often considered as an asset.