The term "recession" describes a situation where
A) inﬂation rates exceed normal levels.
B) output and living standards decline.
C) an economy's ability to produce is destroyed.
D) government takes a less active role in economic matters.

Question

Quizplus · Accepted Answer

A recession is a period of decline in the economy where there is a decrease in output, employment, and living standards. Inflation rates could be low or high during a recession, but they are not the defining factor. The ability to produce is not necessarily destroyed but may be reduced. The government may or may not take a less active role in economic matters during a recession.

The Term "Recession" Describes a Situation Where