What is a recession? What will be an ideal ...

[Collmarie]

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]

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

[Collmarie]

Excellent

[daiying98]

Thanks for the timely response, appreciate it