Question

A period of falling real gross domestic product is a(n):

a) Expansion
b) Peak
c) Recession
d) Contraction

Answer 1

A period of falling real GDP is known as a recession, which is marked by widespread economic decline across various sectors and usually lasts from six months to a year. Option c is correct.

Step-by-step explanation:

A period of falling real gross domestic product (GDP) is referred to as a recession. During a recession, the economy experiences a significant decline in total output, income, employment, and trade. This phase of the business cycle usually lasts for six months to a year.

It is a period that begins after the economy reaches a peak of activity and ends as the economy reaches its trough. If a recession is especially lengthy and deep, it may be termed a depression. Historical examples of recession include the 2008-2009 Great Recession and the recession induced by COVID-19 in 2020.

Answer 2

A period of falling real GDP is known as a recession, which signifies a contraction in the economy and is marked by increased unemployment and decreased economic activity.

The correct answer to the question is c) Recession.

Step-by-step explanation:

A period of falling real gross domestic product (GDP) is known as a recession. Real GDP is the measure of a country's economic output adjusted for price changes.

When the real GDP decreases for a sustained period, typically for 6 consecutive months or more, it indicates that the economy is contracting. During a recession, factors such as unemployment rates usually increase, and there is a general slowdown in economic activity.

The correct answer to the question is c) Recession. It is part of the business cycle, beginning after the economy reaches a peak and ending as the economy reaches its trough.

An extended recession, characterized by a more significant and prolonged drop in GDP, is referred to as a depression, with historical examples including the 1930s Great Depression and the more recent Great Recession of 2008-2009.