The Recovery Phase of the Business Cycle Ends When

question 39

Multiple Choice

The recovery phase of the business cycle ends when

• A)we reattain the level of the previous peak.
• B)we reattain the level of the previous trough.
• C)we go into the next recession.
• D)we are back at full employment.

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Definitions:

Cumulative Profits

The total amount of profit a company has earned over a specific period, adding together all net profits and losses to date.

Initial Outlay

The initial investment or capital required to start a project or investment.

Mutually Exclusive

Events or choices that cannot occur or be chosen at the same time, necessitating an either/or selection.

Financial Viability

The ability of an entity to generate sufficient income to meet operating payments, debt commitments, and, where applicable, to allow for growth, while maintaining a solid financial position.