-Refer to Exhibit 7-4.Did Country A experience a recession (based on the standard definition)in 2019?
A) Yes,because its Real GDP declined during two consecutive quarters in 2019.
B) No,because its Real GDP did not decline during three consecutive quarters in 2019.
C) Yes,because its Real GDP was lower at the end of the year than it was at the beginning of the year.
D) This information cannot be determined because the determination of a recession is based upon GDP not Real GDP.

Question

-Refer to Exhibit 7-4.Did Country A experience a recession (based on the standard definition)in 2019?
A) Yes,because its Real GDP declined during two consecutive quarters in 2019. 
B) No,because its Real GDP did not decline during three consecutive quarters in 2019. 
C) Yes,because its Real GDP was lower at the end of the year than it was at the beginning of the year. 
D) This information cannot be determined because the determination of a recession is based upon GDP not Real GDP.

Quizplus · Accepted Answer

A recession is typically defined as a decline in Real GDP for two consecutive quarters, which is the scenario described in option A.