A traditional definition of recession is
A) any GDP gap which persists for 9 months or more
B) deflation or a slowing of the inflation rate for one year or more
C) a temporary shock to the economy resulting in the need for fiscal or monetary stimulus
D) at least two successive quarters of positive unemployment
E) negative GDP growth for half a year or more

Question

Quizplus · Accepted Answer

A traditional definition of recession is when there is negative GDP growth for at least two consecutive quarters, which would be half a year or more. Option E captures this definition.

A Traditional Definition of Recession Is