PRC-3 · Chapter 15 · Question 12 of 44
During a specific phase of the business cycle, an economy experiences two consecutive quarters of declining GDP, rising unemployment, and falling consumer confidence. This phase is officially termed a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Recession
Explanation
A recession is technically defined as a general economic decline lasting for at least two consecutive quarters, characterized by falling output and rising unemployment.
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