QuestionAugust 16, 2025

A recession is defined by economists as a time period when: consumer confidence is low business profits are falling unemployment is rising real GDP has declined for at least two quarters

A recession is defined by economists as a time period when: consumer confidence is low business profits are falling unemployment is rising real GDP has declined for at least two quarters
A recession is defined by economists as a time period when: consumer confidence is low business profits are falling unemployment is rising real GDP has declined for at least two quarters

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Answer

A recession is defined by economists as a period when real GDP has declined for at least two quarters, accompanied by low consumer confidence, falling business profits, and rising unemployment. Explanation 1. Identify Key Economic Indicators Economists define a recession by observing specific economic indicators such as consumer confidence, business profits, unemployment rates, and real GDP. 2. Analyze Real GDP Decline A recession is confirmed when real GDP declines for at least two consecutive quarters. 3. Assess Unemployment Trends Rising unemployment is a common characteristic during a recession. 4. Evaluate Business Profits Falling business profits indicate reduced economic activity, typical in a recession. 5. Consider Consumer Confidence Low consumer confidence reflects decreased spending, contributing to a recession.

Explanation

1. Identify Key Economic Indicators<br /> Economists define a recession by observing specific economic indicators such as consumer confidence, business profits, unemployment rates, and real GDP.<br /><br />2. Analyze Real GDP Decline<br /> A recession is confirmed when real GDP declines for at least two consecutive quarters.<br /><br />3. Assess Unemployment Trends<br /> Rising unemployment is a common characteristic during a recession.<br /><br />4. Evaluate Business Profits<br /> Falling business profits indicate reduced economic activity, typical in a recession.<br /><br />5. Consider Consumer Confidence<br /> Low consumer confidence reflects decreased spending, contributing to a recession.
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