Which technically correctly describes a recession?
A) a period of declining real incomes and rising unemployment.
B) Occurring after six successive months of negative economic growth.
C) Occurring after two successive quarters of negative economic growth.
D) Any time when the rate of economic growth falls

Question

Quizplus · Accepted Answer

A recession is officially defined as a period of at least two consecutive quarters of negative economic growth, typically measured by a decline in GDP. This means that there has been a significant contraction of economic activity across the board, indicating a widespread decline in economic performance. While declining real incomes and rising unemployment are often symptoms of a recession, they are not the defining characteristics, as they can occur in other economic scenarios as well. Option B is incorrect as it states six months, while the definition of recession considers two quarters. Option D is also incorrect as simply falling rates of economic growth do not necessarily indicate a recession, as economic growth can fluctuate up and down within a stable range.

Which Technically Correctly Describes a Recession