A growth recession is characterized by
A)An increasing unemployment rate with moderate inflation.
B)An increasing unemployment rate with substantial inflation.
C)A positive growth rate below 3 percent annually.

Question

Quizplus · Accepted Answer

A growth recession is a situation where the economy is growing at a positive rate but the rate of growth is below the long-term trend rate of growth. It is characterized by low job creation, stagnant wages, and weak consumer spending. Inflation in a growth recession is either moderate or low. Therefore, option C is the best choice as it accurately describes a growth recession.

A Growth Recession Is Characterized by