Asked by Allysa Jovellanos on Sep 29, 2024

Which of the following statements is true?

A) A recession is defined as two or more successive quarters in which the economy shrinks instead of grows.
B) A recession is defined as two or more quarters in which unemployment rates are above 7%.
C) Inflation is defined as a sudden rise in prices for hot commodities such as gasoline and electronics.
D) Unemployment is defined as the total number of workers who are not in the workforce in any given quarter.
E) All of these are correct.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, and other indicators.

Economy Shrinks

A period during which an economy experiences negative growth, leading to a reduction in production, employment, and other economic activities.

  • Acknowledge the influence of government initiatives on economic balance, including fiscal and monetary policies.