Asked by Zeyka Strandzheva on May 26, 2024
Verified
A recession is best defined as a period during which:
A) the percentage of the population employed increases.
B) employment,output,and income decrease.
C) the average price level in an economy decreases.
D) the usage of labor and capital resources increases.
E) budget deficit and trade deficit decrease.
Recession
A short-term downturn in the economy characterized by decreased trade and industrial production, typically marked by a decline in gross domestic product (GDP) for two consecutive quarters.
Employment
Employment refers to the condition of having paid work or the relationship between an employer and an employee who performs work or services for compensation.
Income Decrease
Income Decrease refers to a reduction in the amount of money received by an individual or entity, often affecting purchasing power and economic stability.
- Understand the principles of economic cycles, encompassing downturns and growth periods along with their signs.
Verified Answer
SN
Soreti NurgiJun 01, 2024
Final Answer :
B
Explanation :
A recession is a period of time where there is a significant decline in economic activity. This decline is generally characterized by a decrease in employment, output, and income, as well as a general slowdown in economic growth. This is what separates a recession from a simple slowdown in growth. The other choices listed are not accurate descriptions of a recession.
Learning Objectives
- Understand the principles of economic cycles, encompassing downturns and growth periods along with their signs.