Recessions can be defined as I. significant and widespread declines in real GDP and rising unemployment. II. significant and widespread declines in nominal GDP. III. a significant and widespread decline in economic activity with falling real GDP, falling unemployment, falling production, and falling sales.
A) I only
B) II only
C) III only
D) I and III only

Question

Quizplus · Accepted Answer

Recessions are typically characterized by significant and widespread declines in real GDP and rising unemployment, as stated in option I. Option III incorrectly includes falling unemployment, which is not characteristic of a recession.

Recessions Can Be Defined as I