When national output declines,the economy is said to be in
A)an expansion.
B)a deflation.
C)a recovery.
D)a recession.

Question

Quizplus · Accepted Answer

When there is a decline in national output, it signifies a slowdown in economic activity. This is generally referred to as a recession. Therefore, option D - a recession - is the correct answer. Options A - an expansion, B - a deflation, and C - a recovery, all signify an increase in economic activity, which would not be the case when there is a decline in national output.

When National Output Declines,the Economy Is Said to Be in