Question

When the country’s GDP falls, the economy experiences a __________. A. peak B. trough C. recovery D. recession

Answer 1

When a country's GDP falls, the economy is said to be shrinking and therefore is entering into a recession. A recession is a decline in the economic output of a country and this is traditionally measured by GDP percentage growth or contraction. 

Answer 2

The correct answer is D. Recession

Explanation:

GDP stands for Gross Domestic product that is an economical measure based on the products and services a country produces every year and that is commonly used to study the economy of nations. In this way, it is believed if the GDP is high the economy is strong and the economy grows as the GDP increases every year, in the same way, a country with a low GDP or one that is decreasing shows there are issues with the economy and the economy is in recession which means the economy is declining in a country and therefore fewer products and services are produced. Thus, when the country's GDP falls, the economy experiences a recession.