A recession is determined by which of the following? a) An increase in Real GDP for two or more consecutive quarters

Business Dec 24, 2020

A recession is determined by which of the following?

a) An increase in Real GDP for two or more consecutive quarters.

b) A phase of the business cycle.

c) A decrease in Real GDP for two or more consecutive quarters.

d) Politicians and Economists.

Expert Solution

The correct option is c) A decrease in Real GDP for two or more consecutive quarters.

Explanation:

Recession refers to the stage of the business cycle that explains the decrease in the real GDP of a nation for two or more consecutive quarters as a decrease in real GDP explains the reduction in the production of goods and services within an economy, which is due to decrease in the aggregate demand by the people.

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