According to the NBER, a severe decline in economic activity that lasted less than two quarters:
A)Could not be considered a recession
B)Could still be considered a recession
C)Would not be called a recession until more than two years had passed
D)Would immediately be called a recession

Question

Quizplus · Accepted Answer

The NBER (National Bureau of Economic Research) defines a recession as a significant decline in economic activity lasting more than a few months, which is typically seen as two consecutive quarters of negative GDP growth. However, the NBER also notes that a recession can be identified "without reference to two consecutive quarters of decline in real GDP" and that a severe decline in economic activity that lasts less than two quarters can still be considered a recession. Therefore, option B is the correct answer.

According to the NBER, a Severe Decline in Economic Activity