PRC-3 · Chapter 15 · Question 4 of 44
An economy has experienced two consecutive quarters of negative GDP growth. Factories are laying off workers, consumer spending is dropping, and business pessimism is high. The economy has entered a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Recession
Explanation
A recession is a period of general economic decline, defined technically as two consecutive quarters of falling real GDP, marked by rising unemployment and falling demand.
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