During the Most Recent Three Quarters, Real GDP Increased from $170

question 103

Multiple Choice

During the most recent three quarters, real GDP increased from $170 to $180 to $200. Economists describe this as a(n)

• A) inflation.
• B) expansion.
• C) contraction.
• D) recession.
• E) deflation.

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Definitions:

Inventory

The goods and materials that a business holds for the ultimate goal of resale, production, or utilization.

Incremental Interest Rate

The interest rate used in lease agreements or loans that represents the additional interest charged over a base rate.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the issuing company's equity at certain times during the bond's life, usually at the discretion of the bondholder.