Question

A significant decline in general economic activity extending over a period of time is _______(a) Business cycle(b) Contraction phase(c) Recession(d) Recovery

Answer 1

Answer:

(C) Recession

Explanation:

Answer 2

The correct option is (c) Recession.

Definition of Recession

A recession is defined as a major drop in economic activity across the economy that lasts more than a few months and is reflected in real GDP, real income, employment, industrial output, and wholesale-retail sales.

Definition of Business cycle

Business cycles are defined as coordinated cyclical upswings and downswings in broad economic activity metrics such as output, employment, income, and sales.

Definition of Contraction phase

Contraction refers to a period throughout the business cycle when the economy as a whole is in decline.

Definition of Recovery

Following a recession, economic recovery entails reallocating resources and personnel from failed enterprises and investments to new jobs and uses.

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