A recession can best be defined as a period of time in which
A)total output of the economy falls.
B)total output of the economy rises very slowly.
C)total unemployment falls.
D)total international trade fails to rise.
E)Both a and c

Question

Quizplus · Accepted Answer

A recession is typically characterized by a significant and prolonged decline in the overall output of an economy, usually measured by gross domestic product (GDP). During a recession, employment levels also tend to fall, leading to higher levels of unemployment. Therefore, choice A best defines a recession, while choice B is more closely associated with a period of slow economic growth. Choice C is inaccurate, as total unemployment tends to rise during a recession, not fall. Choice D is not a defining characteristic of a recession, as international trade can be affected by a variety of factors unrelated to the overall health of an economy.

A Recession Can Best Be Defined as a Period of Time