A recession is a significant, widespread decline in
A) interest rates and inflation.
B) employment and inflation.
C) employment and real income.
D) inflation and real income.

Question

Quizplus · Accepted Answer

A recession is defined as a significant decline in economic activity, typically seen in a decrease in real Gross Domestic Product (GDP) for two consecutive quarters. This decline in economic activity leads to a decrease in employment levels and a decrease in real income for individuals. While inflation may also decrease during a recession, it is not a defining characteristic. Therefore, choice C, employment and real income, is the best choice.

A Recession Is a Significant, Widespread Decline in