When Macroeconomists Use the Term "Recession" They Usually Define It

question 6

Multiple Choice

When macroeconomists use the term "recession" they usually define it as a fall in real GDP that lasts for at least

• A)three quarters.
• B)two quarters.
• C)two years.
• D)one quarter.
• E)one year.

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Definitions:

Pauper Labor Fallacy

The mistaken belief that importing goods from countries with low wages hurts the economy of high-wage countries.

Sweatshop Labor Fallacy

A misconception that all factory work in developing countries is exploitative and harmful, ignoring the complexity and variation of labor conditions.

Heckscher-Ohlin Theory

An economic theory that suggests countries export what they can most efficiently and abundantly produce, based on factors of production like land, labor, and capital.

Absolute Advantage

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.