Question

Which of the following is the economic definition for recession? Any increase in unemployment is a recession. An increase of 2% or more in unemployment is a recession. Any decline in the real GDP is a recession. Two or more quarters (6 months or more) of declining real GDP is a recession.

Answer 1

Two or more quarters (6 months or more) of declining real GDP is a recession. It should also be noted that these quarters must be back-to-back, regardless of the extent of the fall.