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.

Question

Quizplus · Accepted Answer

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.

Which of the Following Is True of a Recession