Which of the Following Is the Best Definition of a Recession

question 34

Multiple Choice

Which of the following is the best definition of a recession?

• A) A period of two consecutive quarters of declines in the level of real GDP.
• B) A period of significant, widespread decline in real income and employment lasting more than a few months.
• C) A decline in the stock market of 10% or more over a period of one year.
• D) A period of increasing unemployment rates lasting more than a year.

---

Definitions:

Work in Process

Inventory items that are in the process of being transformed from raw materials into finished goods but are not yet complete.

Overapplied Manufacturing Overhead

A situation where the allocated amount for manufacturing overhead costs exceeds the actual amount incurred.

Manufacturing Costs

Expenses incurred in the process of producing goods, including direct materials, direct labor, and both fixed and variable manufacturing overhead.

Raw Materials

The basic materials that are used in the manufacturing process to produce goods, typically transformed or converted into finished products.