Asked by Jordyn Mercedes on May 22, 2024
Verified
Which of the following is true of a recession?
A) It is typically accompanied by inflation and investment growth.
B) It lasts for more than two years on an average.
C) It is typically longer than periods of expansion.
D) It begins after an expansion has peaked.
E) It continues as long as actual output exceeds the potential output.
Recession
An interval where the economy experiences a downturn, with a noticeable decrease in trade and manufacturing activities, usually identified by GDP decreasing for two straight quarters.
Inflation
An increase in the economy’s average price level.
Expansion
Expansion refers to the phase in the economic cycle where an economy is growing and experiencing increasing levels of output, employment, and income.
- Acquire knowledge of the fundamentals of economic oscillations, involving declines and upswings and their symptoms.
Verified Answer
KF
Keitlyn FangonilloMay 25, 2024
Final Answer :
D
Explanation :
A recession is a period of significant decline in economic activity, usually characterized by a contraction in GDP, employment, and trade. It typically begins after an expansion has peaked and can last from a few months to several years. Recession is often accompanied by deflation, rising unemployment, and a drop in consumer and business confidence. In contrast to expansion, which is a period of steady economic growth, recession marks a slowdown in economic activity and a decline in the overall well-being of the population.
Learning Objectives
- Acquire knowledge of the fundamentals of economic oscillations, involving declines and upswings and their symptoms.