Question

for the the questions that follow, suppose a country has the following quarterly growth data for the last three years: year 2010 2011 2012 q1 3.1% 3.1% 1.3% q2 3.2% -4.1% 1.2% q3 2.2% 2.2% 3.2% 1.2% 1.5% 313% the country's long-run average growth rate is 3%. how many quarters were spent in recession? a. six b. five c. four d. three e. two

Answer 1

Reviewing the quarterly growth data from 2010 to 2012, only one quarter in 2011 Q2 showed negative growth of -4.1%. Since there were not two consecutive quarters of negative growth, the country did not go through a recession during these years as per the conventional definition.

Step-by-step explanation:

To determine the number of quarters spent in recession, we review the quarterly growth data for the country from the years 2010 to 2012. By definition, a recession is often considered as two consecutive quarters of negative GDP growth. Looking at the data provided, we can identify the quarters with negative growth:

• 2011 Q2: -4.1%

With only one quarter of negative growth and no consecutive negative quarters, we can answer that the country did not experience a recession during these years according to the conventional definition.