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:

Minimum-Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers.

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, often leading to unemployment.

Unemployment Insurance

A government-provided insurance that pays out when an individual loses their job and meets certain eligibility requirements.

Unemployment

A scenario in which people who are able to work and are actively looking for a job cannot secure employment.