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Most Recessions Are Triggered by Decreasing Business Investment Spending, Falling

question 106

True/False

Most recessions are triggered by decreasing business investment spending, falling net exports, or rising interest rates.


Definitions:

ΔTR/Δq

The change in total revenue that results from selling one additional unit of a product, essentially another term for marginal revenue.

Marginal Revenue

Earnings obtained from the sale of one more unit of a good or service.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, reaching a state of balance.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to price-takers behavior.

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