Author Question: What is a recession? What will be an ideal response?[br][br][b][color=#7BCCB5]Question ... (Read 71 times)

Collmarie · **on:** Jun 29, 2018

What is a recession?

What will be an ideal response?

Question 2

Economic depreciation is the

A) firm's opportunity cost of using its own capital.
B) change in the market value of capital over a given period.
C) return that an entrepreneur can expect to receive on average.
D) forgone return on the funds used to buy capital.

mammy1697 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A recession is a period of time during which real GDP decreases, so that the growth rate of real GDP is negative, for at least two successive quarters. A recession occurs starts after a peak in the business cycle and ends before a trough in the business cycle. During a recession, real GDP falls below potential GDP.

Answer to Question 2

B