Multiple choice

What do you mean by recession in an economy?

  1. Reduction of general savings of a country.

  2. Reduction of country's industrial output.

  3. The reduction of a country's gross domestic product (GDP) for at least two quarters.

  4. Both (1) and (3)

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A technical recession is defined as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. While industrial output and savings may also drop, the GDP metric is the standard definition.

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