It Has Become Conventional to Classify an Economic Downturn as a ________

question 241

Multiple Choice

It has become conventional to classify an economic downturn as a ________ when aggregate ________ declines for two consecutive quarters.

• A) depression; supply
• B) deflation; spending
• C) recession; output
• D) trough; demand

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Definitions:

Npvgo

Net Present Value of Growth Opportunities; a measure evaluating the profitability of future investments by comparing their present value to the initial outlay.

Required Return

The minimum annual return rate that incites people or companies to allocate resources to a particular investment or project.

Constant Growth

A model in finance that assumes a stock’s dividends will continue to grow at a uniform rate indefinitely, used to estimate the stock's current value.

Dividends

Proceeds allocated by a corporation to its share owners, principally derived from the business's earnings.