A growth recession is characterized by
A)An increasing unemployment rate with moderate inflation.
B)An increasing unemployment rate with substantial inflation.
C)A positive growth rate below 3 percent annually.
D)A negative growth rate with a low inflation rate.

Question

Quizplus · Accepted Answer

A growth recession is typically defined as a period of positive economic growth that falls below the long-term average, usually around 3 percent. During a growth recession, there may still be job losses and increased unemployment, but inflation would typically be low or moderate. Therefore, option C ("A positive growth rate below 3 percent annually") is the best choice.

A Growth Recession Is Characterized by