A Recession Is Defined by ____ of Falling Real GDP

question 57

Multiple Choice

A recession is defined by ____ of falling real GDP.

• A) 3 months
• B) two consecutive quarters
• C) three consecutive quarters
• D) twelve months
• E) no specific time period - the NBER business cycle dating committee determines the period of recession

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Definitions:

Southern Division

A geographical or organizational subsection of a company that operates in the southern region.

Fixed Expenses

Costs that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs associated with running a business, resulting in neither profit nor loss.

Northern Division

A geographical or organizational segment of a company responsible for operations in the northern region.