The Newscast Cited Forecasts That National Output Might Continue to Fall

question 105

Multiple Choice

The newscast cited forecasts that national output might continue to fall in the future. If total output shows decline for two consecutive quarters, economists would classify this as a ________.

• A) depression
• B) retraction.
• C) period of stagflation.
• D) recession.

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Definitions:

Product Market

The marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.

Cell Phones

Portable electronic devices used for communication over long distances without a physical connection.

Circular-Flow Diagram

A visual framework that demonstrates the pathways through which money travels among marketplaces, connecting businesses to households.

Firm

An organization that produces goods and services for sale.