Question

Which of these terms is defined as a decline in economic activity that usually lasts? 1) Recession 2) Inflation 3) Deflation 4) Stagnation

Answer 1

Option 1

Step-by-step explanation:

The answer would be Option 1: Recession.

A recession is a period of time of reduced economic activity that is usually characterized by a decline in gross domestic product (GDP) and a rise in unemployment.

During a recession, there is generally a decrease in consumer spending, investments, and employment.

Option 2 and 3, inflation and deflation, are not periods of economic decline. Inflation is the increase in the general level of prices, while deflation is the decrease in the general level of prices.

Option 4, stagnation, could refer to stagnation in economic growth, but not a decline.