An Economy That Experiences Two or More Consecutive Quarters of Decreases

question 27

Multiple Choice

An economy that experiences two or more consecutive quarters of decreases in real GDP is experiencing a(n)

• A) positive output gap.
• B) a negative output gap.
• C) trough.
• D) recession.
• E) deflationary gap.

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Definitions:

Entrusted

Pertains to the act of giving someone the responsibility to take care of something or to carry out a task or duty.

Subcontractor

An individual or business that signs a contract to perform part or all of the obligations of another's contract.

Unsecured Credit

A type of loan or credit that is not backed by collateral, meaning the lender relies on the borrower's creditworthiness and promise to repay.

Lowest Risk

Involves choosing an option that minimizes potential hazards or losses.