Final answer:
The state of the economy when there is a decline in a country's GDP for 2 or more consecutive three-month periods is known as a recession.
Step-by-step explanation:
The state of the economy when there are 2 or more consecutive three-month periods of decline in a country's GDP is known as a recession. A recession is identified by a period of decline in total output, income, employment, and trade, usually lasting for six months or longer. It marks widespread contractions in many sectors of the economy. While U.S. real GDP has generally increased dramatically over the long term, it has experienced fluctuations that represent the business cycle. The Great Depression of the 1930s is an example of a particularly severe and long-lasting recession, and more recent examples include the 2008-2009 Great Recession and the recession induced by COVID-19 in 2020.