How many quarters (3-month periods)must the "real" GDP decline to have the economy considered to be in a recession?

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Quizplus · Accepted Answer

According to the National Bureau of Economic Research (NBER), a recession is defined as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. The NBER does not specify a specific number of quarters for a recession, but a decline in real GDP for two consecutive quarters is often cited as a rule-of-thumb. Therefore, to answer the question, the economy must experience a decline in real GDP for at least two consecutive quarters (6 months) to be considered in a recession. This is referred to as a technical recession. However, the NBER also considers other economic indicators and factors in determining a recession, making it more complex than simply counting the number of quarters of negative GDP growth.

How Many Quarters (3-Month Periods)must the "Real" GDP Decline to Have