A significant decline in activity spread across the economy, lasting more than a few months is called
A) a recession.
B) inflation.
C) an expansion.
D) a peak.

Question

Quizplus · Accepted Answer

A significant decline in economic activity that lasts for more than a few months is called a recession. In a recession, there is a contraction in output, income, employment, and trade, leading to a decline in economic growth. Inflation, on the other hand, is a sustained increase in the general price level of goods and services over time. An expansion refers to a period of increasing economic growth and activity after a recession, while a peak is the turning point of an economic expansion before a recession begins.

A Significant Decline in Activity Spread Across the Economy, Lasting