Which statement is TRUE about a recession?
A) It can be concentrated only in a single geographic area, but it must be widespread across many sectors of the economy within that area.
B) It must be a significant decline in economic activity that lasts for at least three years in a row.
C) It is a significant decline in economic activity lasting more than a few months and must be widespread geographically.
D) It can be a significant and widespread decline lasting only a month or two.

Question

Quizplus · Accepted Answer

A recession is defined as a significant decline in economic activity lasting more than a few months and must be widespread geographically. It does not have to last for at least three years, as stated in choice B, and it can be significant and widespread but still last only a few months, as stated in choice D. Choice A is incorrect because a recession can be widespread across many sectors of the economy in multiple geographic areas, not just a single area.

Which Statement Is TRUE About a Recession