A Review of Economic Data Suggests That

question 56

Multiple Choice

A review of economic data suggests that:

• A) expansions are shorter than recessions.
• B) business cycles are recurrent and periodic.
• C) over the last fifty years, recessions are becoming more common.
• D) recessions are shorter in duration than expansions.

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Definitions:

Net Investment

Net Investment refers to the total amount spent on purchasing new capital assets minus the proceeds from the sale of old or obsolete assets.

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, country, or other entity, either through physical wear and tear or obsolescence.

Control

In the context of management or economics, it refers to the ability to direct the behavior of a system or the decisions within an organization to achieve desired outcomes.

Annual Interest Rate

The annual interest rate is the percentage of interest that is charged or earned on an investment or loan over a one-year period.