The single best indicator of a recession is:
A) negative real GDP growth.
B) negative nominal GDP growth.
C) increasing unemployment.
D) falling prices.

Question

Quizplus · Accepted Answer

Negative real GDP growth indicates that overall economic activity has decreased, which is a key characteristic of a recession. B and D may also be indicators of a recession, but they are not as reliable as negative real GDP growth. Increasing unemployment (C) is often a result of a recession, but not necessarily a reliable indicator of one.

The Single Best Indicator of a Recession Is