Recessions are periods when:
A) output rises.
B) the aggregate price level rises.
C) the unemployment rate is falling.
D) output and employment are falling in many industries.

Question

Quizplus · Accepted Answer

Recession is a period when there is a significant decline in economic activity, marked by falling output and employment in many industries. The unemployment rate tends to rise during recessionary periods. The aggregate price level also tends to fall in recessions, rather than rise. Therefore, option D is the best choice.

Recessions Are Periods When