Question

What happens to economic output as measured by GDP during a recession?

It contracts for one month
It contracts for at least 6 months
It contracts for at least 2 years
It contracts for at least 5 years in a row

Answer 1

It contracts for at least 6 months

Explanation: GDP must fall for two consecutive quarters (6 months), meanwhile the unemployment rate will also rise between 6% and 10%.