BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Negative GDP growth for the year as a whole
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Negative GDP growth for two consecutive quarters
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Negative GDP growth for three consecutive quarters
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Negative GDP growth with increased rate of inflation compared to the previous years
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Detailed explanation-1: -In 1974, economist Julius Shiskin came up with a few rules of thumb to define a recession: The most popular was two consecutive quarters of declining GDP. A healthy economy expands over time, so two quarters in a row of contracting output suggests there are serious underlying problems, according to Shiskin.
Detailed explanation-2: -A recession is a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used.
Detailed explanation-3: -A recession can be defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate. Many other indicators of economic activity are also weak during a recession.
Detailed explanation-4: -Recession. A recession is considered a normal part of the boom-and-bust business cycle. It is generally defined as a decline in GDP for at least two consecutive quarters. Given the lag in collecting data on economic activity, a brief recession may be over before it is confirmed to have happened.
Detailed explanation-5: -According to a general definition of recession-two consecutive quarters of negative gross domestic product (GDP)-the U.S. entered into a recession in the summer of 2022. The organization that defines U.S. business cycles, the National Bureau of Economic Research (NBER), takes a different view.