Question

For how many successive quarters must gross domestic product (GDP) fall for the economy to be considered in recession?

A. one quarter
B. three quarters
C. two quarters
D. four quarters

Answer 1

The economy is considered to be in recession when there are two consecutive quarters of decline in gross domestic product (GDP).

Step-by-step explanation:

In order for the economy to be considered in recession, there must be two quarters of successive decline in gross domestic product (GDP). A recession is defined as a significant decline in real GDP, where the economy experiences negative growth for two consecutive quarters. This is a commonly used measurement to determine if the economy is in a recession.