What Is Necessary for an Economic Downturn to Be Classified

question 9

Multiple Choice

What is necessary for an economic downturn to be classified as a recession?

• A) The unemployment rate reaches 10 percent
• B) Negative inflation for one year
• C) Negative economic growth for one year
• D) Aggregate economic output falls for two consecutive quarters

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Definitions:

Debt

Money owed by one party, the debtor, to another, the creditor, typically arising from a transaction of a loan or credit.

Unilateral Contract

A contract in which one party promises to perform a certain action in response to an act of the other party.

Offeree's Performance

The actions or fulfillment of conditions by the party to whom an offer has been made in a contract scenario.

Reward

A sum offered for the performance of some service or attainment of a specific goal, typically by the government or other institutions.