Which of the following statements is true?
A) Another name for capital consumption allowance is depreciation.
B) When there are two consecutive quarterly declines in Real GDP the economy is said to be in recession (based on the standard definition).
C) In the expansion phase of a business cycle,Real GDP rises beyond the recovery.
D) a and b
E) a,b,and c

Question

Quizplus · Accepted Answer

A) The capital consumption allowance is indeed another term for depreciation, reflecting the reduction in value of capital assets over time due to use and obsolescence. B) The standard definition of a recession is often cited as two consecutive quarters of decline in real GDP, which indicates a significant drop in economic activity across the economy. C) During the expansion phase of a business cycle, real GDP increases beyond the recovery phase, marking a period of economic growth that surpasses the previous peak.

Which of the Following Statements Is True