Typically, an economy is said to be in a recession when the nominal GDP drops for at least four consecutive quarters.

Question

Quizplus · Accepted Answer

A recession is generally defined as a significant decline in economic activity, typically characterized by a drop in GDP. However, the definition of a recession can vary by source and is not solely based on the length of time that GDP has dropped. Additionally, some sources may use alternative measures of economic activity, such as employment, to determine whether an economy is in a recession.

Typically, an Economy Is Said to Be in a Recession