Asked by valentina jaimes on Jun 11, 2024
Verified
The term recession refers to
A) a period of decline in real GDP for two business quarters.
B) a fall in the general level of real wages.
C) a fall in the CPI.
D) a fall in the rate of increase of real per capita GDP.
E) a prolonged period of falling prices.
Recession
A short-term economic slump characterized by a reduction in business and industrial activities, usually signified by a GDP decrease over two back-to-back quarters.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's growing over time.
Business Quarters
Divisions of a fiscal year into four three-month periods, used by companies to report financial results and forecast future performance.
- Investigate the determinants of business cycles and how they affect employment rates.
Verified Answer
AM
Ankush MukhiJun 12, 2024
Final Answer :
A
Explanation :
A recession is defined as a period of decline in the real gross domestic product (GDP) for at least two consecutive business quarters (six months). This means that the total economic output of a country is shrinking over an extended period of time. Other indicators of a recession often include rising unemployment rates, falling consumer confidence, and decreasing business profits.
Learning Objectives
- Investigate the determinants of business cycles and how they affect employment rates.