BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS POLICY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An economic contraction is synonymous with
A
economic growth
B
a recession
C
full employment
D
a peak
Explanation: 

Detailed explanation-1: -An economic cycle is the circular movement of an economy as it moves from expansion to contraction and back again. Economic expansion is characterized by growth. On the other hand, a contraction means a recession, which involves a decline in economic activity that spreads out over at least a few months.

Detailed explanation-2: -Economic contractions often become recessions. A recession is a significant decline in general economic activity extending over a period of time. A general rule of thumb is that two consecutive quarters of economic contraction constitute a recession.

Detailed explanation-3: -Synonyms: downturn, downswing, slump, crunch (informal), decline, hard times (informal), economic slowdown, economic crisis, financial crisis, depression. Sense: Noun: withdrawal. Synonyms: withdrawal, withdrawing, retreat, retirement, pullback, pullout, pulling out, receding.

Detailed explanation-4: -As identified by the NBER The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.

Detailed explanation-5: -When the economy goes up, it’s called “economic growth”; but when it goes down, it’s called “economic contraction” (or “downturn”). If the economy shrinks for two consecutive quarters, it is said to have gone into recession.

There is 1 question to complete.