A 'recession' is often defined as:
A)two consecutive quarters experiencing a decline in the economic growth rate.
B)two consecutive quarters of declining nominal GDP.
C)a significant decline in activity visible in industrial production, employment, real income, and wholesale/retail trade lasting more than a few months.
D)a significant decline in inflation and unemployment lasting more than a few months.

Question

Quizplus · Accepted Answer

A recession is typically defined as a significant decline in economic activity across multiple sectors, including industrial production, employment, real income, and wholesale/retail trade, lasting for more than a few months. This definition captures the broader impact of a recession beyond just GDP, which is why option A and B are not the best choices. Option D only captures two of many possible outcomes of a recession, so it is also not the best choice.

A 'Recession' Is Often Defined As