A decline in total production lasting a minimum of two consecutive quarters defines
A)stagflation.
B)a recession.
C) a mortgage crisis.
D) all of the above.

Question

Quizplus · Accepted Answer

A decline in total production lasting for at least two consecutive quarters is the definition of a recession. Stagflation refers to a situation where the economy experiences both inflation and stagnation. A mortgage crisis refers to a situation where a large number of homeowners default on their mortgages, leading to a decline in the housing market and potentially causing a broader economic recession. While a recession can certainly be caused by a mortgage crisis (as was the case in the late-2000s global financial crisis), not all recessions are caused by mortgage crises, and not all mortgage crises necessarily lead to recessions.

A Decline in Total Production Lasting a Minimum of Two