ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the economy is not healthy
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businesses are selling less.
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there are fewer jobs.
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all of the above
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Detailed explanation-1: -Negative Growth in an Economic Context If a country’s real gross domestic product declines for two or more quarters, it is indicative of a recession in the business cycle. Negative growth rates are often accompanied by declining real income, increasing unemployment, and reduced production.
Detailed explanation-2: -If GDP is falling, then the economy is shrinking-bad news for businesses and workers. If GDP falls for two quarters in a row, that is known as a recession, which can mean pay freezes and lost jobs.
Detailed explanation-3: -If the growth rate turns negative, the country will be in recession. GDP is calculated as the sum of public consumption, domestic investment, government spending, and net imports.
Detailed explanation-4: -GDP increases when a country has a positive trade balance or surplus. However, GDP decreases when a country spends more money importing goods and products than it makes exporting goods and products, which leads to a trade deficit.