Question

In the context of the business cycle, _____ is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters.

Answer 1

A recession is an economic downturn marked by a decrease in GDP for two consecutive quarters. It is the contraction phase of the business cycle.

Step-by-step explanation:

In the context of the business cycle, a recession is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters. During a recession, the economy experiences a decline in output, income, employment, and trade.

A recession typically lasts for six months to a year and is characterized by widespread contractions in various sectors of the economy. It is considered the contraction phase of the business cycle and occurs after the economy reaches its peak of activity.