How do economists judge when the economy is in a recession?

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Camacho

29 May, 15:47

How do economists judge when the economy is in a recession?

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Winston Bell · Answer 1

To the average person, a large rise in unemployment means a recession. By contrast, the economists ' rule that a recession is defined by two consecutive quarters of falling GDP is silly ... An alternative measure, gross domestic income (GDI), should, in theory, be identical to GDP.