It Has Become Conventional to Classify an Economic Downturn as a Recession

question 64

Multiple Choice

It has become conventional to classify an economic downturn as a recession when aggregate output declines for

• A) three consecutive quarters.
• B) two consecutive quarters.
• C) a year.
• D) six consecutive quarters.

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Definitions:

Autonomic Activation

The stimulation of the autonomic nervous system, which controls involuntary bodily functions and responses to stress.

Schachter Two-factor Theory

A theory suggesting that emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Common Sense Theory

The belief that perceptions or beliefs deemed as "common sense" are inherently true or valid.

Cannon-Bard Theory

The Cannon-Bard theory of emotion posits that emotional feelings and physiological responses to stimuli occur simultaneously and independently within the body.