It Takes Four Consecutive Quarters of Decline in the GDP

question 9

True/False

It takes four consecutive quarters of decline in the GDP for economists to consider the economy to be in a recession.

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Definitions:

Unionize

The process by which employees come together to form a union in order to collectively bargain for better wages, working conditions, and benefits.

Efficiency Wages

Efficiency wages are above-market wages paid by firms to increase worker productivity.

Equilibrium Level

The state in a market where supply equals demand, resulting in stable prices and quantities where no economic forces are unbalanced.

Efficiency Wages

Wages set above the equilibrium level by employers to increase worker productivity, motivation, and loyalty.