Economists usually use the term "recession" to refer to:
A)any slowdown in the growth of real GDP.
B)zero real GDP growth.
C)two or more consecutive quarters of declining real GDP.
D)a significant reduction in output and employment lasting more than a few months.

Question

Quizplus · Accepted Answer

Economists typically use the technical definition of a recession as two or more consecutive quarters of declining real GDP. This definition is used by many organizations, including the National Bureau of Economic Research (NBER), to officially declare the start and end dates of recessions. While a slowdown in the growth of real GDP could be a sign of an economy's weakening, it would not necessarily meet the criteria for a recession. Similarly, zero real GDP growth may not necessarily indicate a recession, as the economy may still be stable or growing slightly. A significant reduction in output and employment lasting more than a few months may indicate a recession, but this definition is not as precise as the two-quarter definition.

Economists Usually Use the Term "Recession" to Refer To