What Is True About a Recession

question 2

Multiple Choice

What is true about a recession?

• A) It can be concentrated only in a single geographic area, but must be widespread across many sectors of the economy.
• B) It must be a significant decline in economic activity for at least three years in a row.
• C) It is a significant decline in economic activity lasting more than a few months and must be widespread geographically.
• D) None of these answers is correct.

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Definitions:

Double-Blind Procedure

A method used in experiments to prevent bias, where neither the participants nor the experimenters know who is receiving a particular treatment.

Intuition

A rapid, effortless process of knowing or understanding something without the use of rational processes.

Statistical Probability

A measure of the likelihood of a specific event or outcome occurring, based on quantitative data and mathematical calculations.

Predictive Accuracy

The ability of a model or method to correctly forecast the outcome of unknown data points or future events.