To Identify the Onset of a Recession, the National Bureau

question 13

Multiple Choice

To identify the onset of a recession, the National Bureau of Economic Research (NBER) Business Cycle Dating Committee:

• A) uses data on nominal GDP for two consecutive quarters.
• B) uses a range of indicators including real GDP, employment and income.
• C) identifies declining economic activity solely based on a fall in real GDP.
• D) uses a procedure that determines the dates of peaks and troughs mainly on the basis of employment.

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Definitions:

Shut Down

The process of ceasing operations, either temporarily or permanently, often in the context of industrial and manufacturing settings.

Capacity Allocation

Capacity allocation refers to the process of distributing available resources or capacity among various products, services, tasks, or activities.

Responsiveness

The ability of a company or system to rapidly respond to changes in demand or market conditions.

Demand Satisfaction

The degree to which the needs and desires of customers for a product or service are met by a company.