The Point on a Business Cycle When Real GDP Stops

question 97

Multiple Choice

The point on a business cycle when real GDP stops falling and begins rising is called a(n) :

• A) trough.
• B) recession.
• C) peak.
• D) expansion.

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Definitions:

Required Return

The return a investor expects to earn on an investment, taking into account the risk associated with it.

Selling

The act of offering goods or services in exchange for money or other compensation.

Dividend

A portion of a company's earnings distributed to shareholders as a return on their investment.

Constant

An unchanging value in an equation or model, or a fixed value that does not vary over time.