A recession is defined as:
A)A three-quarter or longer decline in real overall output for the nation
B)A two-quarter or longer decline in real overall output for the nation
C)A three-quarter or longer decline in real industrial output for the nation
D)A two-quarter or longer decline in real industrial output for the nation
E)None of the above

Question

Quizplus · Accepted Answer

A recession is typically defined as a period of two or more consecutive quarters of economic decline, measured by a decrease in real gross domestic product (GDP). Option B states a two-quarter or longer decline in real overall output for the nation, which is the correct definition of a recession. Options A, C, and D all mention decline in output but specify either a three-quarter decline or a decline in industrial output only, which are not accurate definitions of a recession. Therefore, option B is the best choice.

A Recession Is Defined As