9.8k views
4 votes
A recession is usually declared to be over when short-run output returns to potential output.A. TrueB. False

User Raleigh
by
6.7k points

1 Answer

2 votes

Answer:

False

Step-by-step explanation:

A recession is a period of general decline in economic activities. It is when the GDP of a country for two consecutive quarters is negative.

Potential output is the output an economy can produce if all its resources are fully employed.

During a recession, output is negative so output would be less than potential output.

User Umang Mathur
by
6.7k points