The Newscast Cited Forecasts That National Output Might Continue to Fall

question 105

Multiple Choice

The newscast cited forecasts that national output might continue to fall in the future. If total output shows decline for two consecutive quarters, economists would classify this as a ________.

• A) depression
• B) retraction.
• C) period of stagflation.
• D) recession.

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Definitions:

Investing Activity

Refers to the purchase and sale of long-term investments and property, plant, and equipment, as well as lending money and collecting on those loans.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, but not retired, and are therefore not considered when calculating earnings per share or dividends.

Common Stock

A type of equity security that represents ownership in a corporation and entitles shareholders to vote on corporate matters and receive dividends.