Question

Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as _______

Answer 1

The correct answer to the following question will be "Recession".

Step-by-step explanation:

• The recession is a contraction of the business cycle whenever there is a massive decline in business activity. It generally occurs once there is a prevalent decrease in expenditure.
• A recession happens if there are two or even more successive periods of negative financial development, which means a guarantee on GDP growth throughout a recession.
• When the economy is in decline, product sales and profits are declining, forcing companies to stop expanding.

Therefore, the Recession is the right answer.