Long-Run Growth Is The

question 49

Multiple Choice

Long-run growth is the:

• A) sustained upward trend in aggregate output per person over several decades.
• B) expansion phase of business cycles.
• C) downturn phase of business cycles.
• D) sustained downward trend in the employment rate over several decades.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the risk or cost of capital.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Hurdle Rate

The minimum rate of return on an investment that a company or investor expects to earn, used as a benchmark for funding projects.

Capital Outlay

Expenditure for acquiring, maintaining, or improving fixed assets such as buildings, equipment, or land, that have a long-term use or value.