QuestionMay 30, 2025

A business cycle that shows declining GDP and rising unemployment for two quarters suggests that an economy: A. has entered a period of recession. B. is approaching one of its peaks. C. has left an extended trough phase. D. will expand quickly in the future

A business cycle that shows declining GDP and rising unemployment for two quarters suggests that an economy: A. has entered a period of recession. B. is approaching one of its peaks. C. has left an extended trough phase. D. will expand quickly in the future
A business cycle that shows declining GDP and rising unemployment for two
quarters suggests that an economy:
A. has entered a period of recession.
B. is approaching one of its peaks.
C. has left an extended trough phase.
D. will expand quickly in the future

Solution
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Answer

A. has entered a period of recession. Explanation 1. Identify Economic Indicators Declining GDP and rising unemployment for two quarters are key indicators of economic contraction. 2. Define Recession A recession is typically defined as two consecutive quarters of negative GDP growth. 3. Match Indicators to Options The indicators match option A, which describes a period of recession.

Explanation

1. Identify Economic Indicators<br /> Declining GDP and rising unemployment for two quarters are key indicators of economic contraction.<br /><br />2. Define Recession<br /> A recession is typically defined as two consecutive quarters of negative GDP growth.<br /><br />3. Match Indicators to Options<br /> The indicators match option A, which describes a period of recession.
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