Which of the following best characterizes the meaning of a recession?
A) a period during which the percentage of the population employed is declining
B) a period during which employment, output, and income are declining
C) a period during which the price level is declining
D) a period during which more resources are being used

Question

Which of the following best characterizes the meaning of a recession?  
A) a period during which the percentage of the population employed is declining 
B) a period during which employment, output, and income are declining 
C) a period during which the price level is declining 
D) a period during which more resources are being used

Quizplus · Accepted Answer

A recession refers to a period when there is a significant decline in economic activity, characterized by a decrease in employment, output, and income. The decline in economic activity usually lasts for a few months and can even last for years. A decrease in the price level may indicate deflation, but it could also occur during periods of economic growth. The use of more resources does not necessarily define a recession.

Which of the Following Best Characterizes the Meaning of a Recession