A recession is deﬁned as a situation where the average price level in the economy is increasing.

Question

Quizplus · Accepted Answer

A recession is actually defined as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in Gross Domestic Product (GDP) in two successive quarters. It is usually accompanied by a rise in unemployment, a decrease in consumer spending, and a drop in the stock market. It is not defined by an increase in the average price level, which would be indicative of inflation rather than a recession.

A Recession Is Deﬁned as a Situation Where the Average