A period of significant decline in economic activity-marked by falling GDP, rising unemployment, and an increased number of bankruptcies-is called:
A) a severe depression.
B) a recession.
C) an expansion.
D) a boom.

Question

Quizplus · Accepted Answer

A recession is a period of declining economic activity, often characterized by falling GDP, rising unemployment, and increased bankruptcies. A severe depression is a further decline in economic activity, often characterized by extreme levels of unemployment and economic hardship for many people. An expansion is a period of increasing economic activity, while a boom is a sudden and rapid increase in economic activity.

A Period of Significant Decline in Economic Activity-Marked by Falling