Recessions Are Periods When Real GDP

question 11

Multiple Choice

Recessions are periods when real GDP:

• A) increases slowly.
• B) increases rapidly.
• C) decreases mildly.
• D) decreases severely.

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Definitions:

Futures Contracts

Standardized legal agreements to buy or sell something at a predetermined price at a specified time in the future.

Organized Exchange

A regulated market where securities, commodities, derivatives, and other financial instruments are traded.

Forward Contracts

A financial contract between two parties to buy or sell an asset at a predetermined future date for a price agreed upon today.

Gold Futures

Standardized contracts to buy or sell gold at a specified future date and price, used by investors for hedging and speculative purposes.