An economy that experiences two or more consecutive quarters of decreases in real GDP is experiencing a(n)
A) positive output gap.
B) a negative output gap.
C) trough.
D) recession.
E) deflationary gap.

Question

Quizplus · Accepted Answer

A recession is defined as two or more consecutive quarters of decreases in real GDP. This indicates a significant decline in economic activity and can result in increased unemployment, decreased consumer spending, and overall economic hardship.

An Economy That Experiences Two or More Consecutive Quarters of Decreases