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.

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Definitions:

Quantity Sold

The total number of units of a product or service that have been sold within a specific period.

NPV

Net Present Value; a calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time.

Break-Even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain, and the point at which a business, product, or service becomes profitable.

Net Present Value

A calculation used to determine the present value of a series of future cash flows by discounting them at a specific rate.