Which of the following statements about recessions is false?

a) A fall in real GDP for two consecutive quarters marks a recession.

b) A long and severe recession might be referred to as a depression.

c) A recession is a prolonged economic contraction.

d) A recession is usually no longer than six months.

Question

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Business

29 April, 10:18

Which of the following statements about recessions is false?

a) A fall in real GDP for two consecutive quarters marks a recession.

b) A long and severe recession might be referred to as a depression.

c) A recession is a prolonged economic contraction.

d) A recession is usually no longer than six months.

+1

Answers (1)

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Nikhil Turner · Answer 1

The correct answer is choice D-

It not true that a recession is usually no longer than six months. A recession van be longer than 6 months (it takes a 6 months fall in real GDP for a recession to occur), but a recession generally does not last longer than a year. Beyond a year, the situation is much severe, and is called an economic depression.