Which of the following is not correct with regard to the definition of a recession as used by the NBER?
A) A recession occurs whenever there is a dip in the growth rate.
B) The exact length of time needed for a downturn to be declared a recession is not specified.
C) Many key economic indicators are used, some of which may move in opposite directions.
D) A recession is characterized by lower levels of economic activity.

Question

Quizplus · Accepted Answer

A recession is not simply a dip in the growth rate; it is defined by a significant decline in economic activity spread across the economy, lasting more than a few months. A dip in the growth rate may be a reflection of a temporary slowdown, not a recession.

Which of the Following Is Not Correct with Regard to the Definition