Which of the following defines recessions?
A) higher prices
B) increased profits
C) higher employment
D) falling real GDP

Question

Quizplus · Accepted Answer

Recessions are defined as a period of significant decline in economic activity, typically characterized by falling real GDP, increasing unemployment, and declining/muted consumer and business sentiments. Higher prices (A) and increased profits (B) are typically characteristics of an expanding or booming economy, while higher employment (C) can be a positive indicator for the economy, but does not define recessions.

Which of the Following Defines Recessions