A recession is commonly defined as occurring when

Question

Quizplus · Accepted Answer

A recession is commonly defined as a period of decline in economic activity, usually measured by a decrease in real gross domestic product (GDP) for at least two consecutive quarters or six months. Therefore, choice D, which states that real GDP decreases for a period of 6 or more months, is the best answer. The other choices are not entirely accurate, as there is no standard threshold for the unemployment rate that defines a recession, and the length of time for which it must stay above a certain level can vary depending on the circumstances.

A Recession Is Commonly Defined as Occurring When