Which one of the following represents a recession?
A) An increase in the unemployment rate.
B) A decrease in stock prices.
C) A decrease in bond prices.
D) A decrease in output.
E) A simultaneous decrease in economic activity and increase in inflation.

Question

Quizplus · Accepted Answer

A recession is defined as a significant decline in economic activity, typically characterized by a decrease in gross domestic product (GDP), income, employment, and trade. A decrease in output is a direct indicator of a recession, reflecting a decline in production and economic activity. The other options listed may also be signs of a recession, but they alone do not define a recession.

Which One of the Following Represents a Recession