ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decline in GDP for six consecutive months ____ Unemployment is increasing ____ Wages are decreasing ____ Production is starting to go down ____ All of these describe which stage of the business cycle.
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Peak
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Contraction/Recession
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Depression/Trough
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Expansion/Recovery
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Explanation:
Detailed explanation-1: -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.
Detailed explanation-2: -Stages of the Business Cycle A recession is defined as an economic period in which real GDP (GDP measured in constant prices) falls for at least two consecutive quarters or for six straight months in a run.
Detailed explanation-3: -A recession is a decline in total output, unemployment rises and inflation falls.
Detailed explanation-4: -Recession – A period in which demand begins to decrease, businesses lower production, unemployment rises, and GDP growth slows for two or more quarters of a calendar year.
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