A growth recession occurs when
A) there are two successive quarters of negative GDP growth
B) economic growth is so rapid that it creates inflation
C) real GDP is growing but nominal GDP is not
D) potential GDP declines
E) GDP grows at a slower rate than its long run trend

Question

Quizplus · Accepted Answer

A growth recession occurs when the economy is still growing, but the rate of growth is slower than its long-run trend. This can be due to a variety of factors such as declining productivity, reduced investment, or structural changes in the economy. It is not necessarily characterized by negative GDP growth or inflation.

A Growth Recession Occurs When