The Business Cycle Dating Committee Defines a Recession as

question 228

Multiple Choice

The Business Cycle Dating Committee defines a recession as

• A)two consecutive quarters of declining real GDP.
• B)two consecutive quarters of declining nominal GDP.
• C)a significant decline in activity visible in industrial production,employment,real income,and wholesale/retail trade lasting more than a few months.
• D)a significant decline in inflation and unemployment lasting more than a few months.

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Definitions:

Incentives

Rewards or motivations offered to encourage specific behaviors or actions by individuals or organizations.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on willingness to pay.

Discount Retailers

Stores that offer products at lower prices by accepting lower margins in return for a high sales volume.

Arbitrage

The practice of taking advantage of price differences between markets to make a profit.