A recession is a decline in: The inflation rate that lasts six months or longer. The unemployment rate that lasts six months or longer. Real GDP that lasts six months or longer. Potential GDP that lasts six months or longer.

Question

Business

Charlee

10 July, 18:13

A recession is a decline in: The inflation rate that lasts six months or longer. The unemployment rate that lasts six months or longer. Real GDP that lasts six months or longer. Potential GDP that lasts six months or longer.

+5

Answers (2)

Know the Answer?

Felipe Baker · Answer 1

Real GDP that lasts six months or longer.

Explanation:

Recession can be defined as a period of great reduction in economic activities. A momentous reduction in spending can lead to a Recession. Recession can have a negative effect on the economy such as a high level of unemployment.

Recession could be as a result of:

- High interest rate.

- Increase in oil prices

- Crash of stock market.

- Effect of war or a great pandemic.

- Deflation.

Kyle Carpenter · Answer 2

The answer is a decline in Real GDP that lasts six months or longer.

Explanation:

A recession is a significant decline in economic activity, lasting six month or more.

when there is recession, there's a drop in the following five economic indicators: real gross domestic product, income, employment, manufacturing, and retail sales.

Hence, option b is the correct answer