Recessions Are Commonly Defined to Occur

question 250

Multiple Choice

Recessions are commonly defined to occur

• A) whenever unemployment increases.
• B) when growth in real GDP decreases for two consecutive quarters.
• C) when growth in real GDP is negative for two consecutive quarters.
• D) when the unemployment rate exceeds 6 percent.

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Definitions:

Welfare

Welfare denotes governmental support aimed at ensuring the basic physical and material well-being of people, particularly those in need.

Complete Knowledge

Refers to a hypothetical situation where all participants in a market have full and perfect information about products, prices, and other market conditions.

Marginal

Relating to the change or difference resulting from a slight incremental increase or decrease in a variable's level.

Economic Variable

A measurable quantity that represents a component of economic performance or behavior, such as GDP, unemployment rate, or inflation.