A Recession Is Commonly Defined as Occurring When

question 225

Multiple Choice

A recession is commonly defined as occurring when

• A) real GDP decreases for a period of 12 or more months.
• B) real GDP decreases for a period of 6 or more months.
• C) the unemployment rate rises above 7.5 percent for 6 or more months.
• D) the unemployment rate rises above 5.0 percent for 12 or more months.

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Definitions:

Bona Fide Purchaser

A person who buys something in good faith without notice of any previous claim or lien against the property.

Good Title

A rightful or legitimate claim to the ownership of property or legal recognition of the ownership of property.

Security Interest

A legal claim or right on property as collateral to secure the performance of an obligation, usually the repayment of a debt.