It has become conventional to classify an economic downturn as a ________ when aggregate ________ declines for two consecutive quarters.
A) depression; supply
B) deflation; spending
C) recession; output
D) trough; demand

Question

Quizplus · Accepted Answer

The statement describes the commonly accepted definition of a recession, which is a decline in aggregate output (or Gross Domestic Product) for two consecutive quarters. A depression is a more severe and prolonged economic downturn, while deflation refers to a sustained decrease in the general price level of goods and services. A trough refers to the lowest point of a business cycle, while demand and supply refer to specific factors that affect economic activity.

It Has Become Conventional to Classify an Economic Downturn as a ________