Downturns in real gross domestic product are called [Math Processing Error], while severe downturns are known as [Math Processing Error]

Business Dec 23, 2020

Downturns in real gross domestic product are called [Math Processing Error], while severe downturns are known as [Math Processing Error].

(a) depressions; contractions.

(b) contractions; recessions.

(d) recessions; depressions.

(e) recessions; contractions.

Expert Solution

The correct option is (d) recessions; depressions.

When the real GDP starts falling, the economy is said to contract and enter a period of recession. If this recession is prolonged and extreme, it can turn into an economic depression.

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