Which of the Following Observations Concerning Phases of a Business

question 1

Multiple Choice

Which of the following observations concerning phases of a business cycle is incorrect?

• A)Maximum amount of unemployment occurs exactly at the trough.
• B)Expansion phase is measured from the trough to the peak.
• C)Trough is the point in time when output stops declining.
• D)The contraction phase is also called recession.

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Definitions:

Outcome

The result or consequence of an action, experiment, or situation.

Conditional Probability

The probability of one event occurring with some relationship to one or more other events.

P(A|B)

The probability of event A occurring given that event B has already occurred, representing a conditional probability.

Complement

In probability theory, the complement of an event is the set of all outcomes in the sample space that are not included in the event itself.