A recession is often defined as a
A)production period where output is declining for three consecutive months.
B)year in which output in any two quarters is lower than the previous year.
C)year of low prices.
D)fall in real GDP lasting at least two consecutive quarters.

Question

Quizplus · Accepted Answer

A recession is defined as a fall in real GDP lasting at least two consecutive quarters, meaning that the economy is contracting and output is decreasing. Choice A is incorrect because it specifies only three months of declining output, which can happen without necessarily indicating a recession. Choice B is incorrect because it doesn't specify the duration of the decline and may not necessarily indicate a recession if the decline is short-lived. Choice C is incorrect because low prices can happen in various economic situations and are not necessarily indicative of a recession.

A Recession Is Often Defined as a