A Recession Is Commonly Defined as Occurring When

question 46

Multiple Choice

A recession is commonly defined as occurring when

• A) the unemployment rate rises above 7.5 percent for 6 or more months.
• B) real GDP decreases for a period of 12 or more months.
• C) the unemployment rate rises above 5.0 percent for 12 or more months.
• D) real GDP decreases for a period of 6 or more months.

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Definitions:

Percent Rate

The percentage that indicates the rate of change or the rate applied to a specific financial calculation.

Base

(1) The quantity that is multiplied by itself in a power. (2) The initial amount to which a percent change is applied.

Accurate

Free from errors or mistakes; precise.

Cent

A small unit of currency, constituting one-one-hundredth of a primary currency unit, used in numerous countries worldwide.