A common definition of a recession is a period of time

Question

Quizplus · Accepted Answer

A recession is typically defined as a period of at least 6 months during which real GDP (i.e. adjusted for inflation) decreases. Option A is incorrect because changes in the dollar value of economic output may be due to inflation or changes in exchange rates, which are not necessarily indicative of a recession. Option B is incorrect because an increase in real economic output would be indicative of economic growth, not a recession. Option C is incorrect because a period of no change in real GDP does not necessarily indicate a recession, as it could also indicate a period of stable economic activity.

A Common Definition of a Recession Is a Period of Time