Question

23.1.5 Quiz: The Business Cycle

Question 3 of 10
When is an economy considered to be in a recession?
A. When it enters a business cycle that does not have a steady
growth line
B. When its business cycles speed up, leading to multiple peaks and
troughs in one quarter
C. When its business cycles slow down, leading to no peaks or
troughs over several quarters

Answer 1

An economy is considered to be in a recession when it enters a business cycle that does not have a steady growth line. During a recession, there is a decline in economic activity, including a decrease in GDP, employment, and consumer spending.

Step-by-step explanation:

An economy is considered to be in a recession when it enters a business cycle that does not have a steady growth line. During a recession, there is a decline in economic activity, including a decrease in GDP, employment, and consumer spending. Recessions are characterized by negative economic growth for at least two consecutive quarters.

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