A recession occurs when ________, when ________, or when both of these occur.
A)potential output grows slowly; actual output falls below potential output
B)potential output grows slowly; actual output rises above potential output
C)potential output grows rapidly; actual output equals potential output
D)potential output grows rapidly; actual output falls below potential output

Question

Quizplus · Accepted Answer

When potential output grows more slowly than desired, conditions are ripe for a recession. A more obvious cause of a recession is when actual output falls below potential output.

A Recession Occurs When ________, When ________, or When Both

A Recession Occurs When , When , or When Both