The Phase of the Business Cycle That Follows a Recession

question 24

Multiple Choice

The phase of the business cycle that follows a recession is known as the:

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

---

Definitions:

Compounded Semi-Annually

A method of calculating interest where the interest is added to the principal amount twice per year, resulting in interest on interest.

Equivalent Stream

A series of equal payments or receipts occurring at regular intervals, used in financial analysis to simplify calculations.

Payments

Amounts of money paid by one party to another in exchange for goods, services, or repayment of a loan.

Compounded Semi-Annually

The method of calculating interest where the accrued interest is added to the principal sum every six months.