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Many commentators call a technical recession as soon as there are two consecutive quarters of decline in a country's real GDP figures. What are the
Many commentators call a "technical recession" as soon as there are two consecutive quarters of decline in a country's real GDP figures. What are the key drawbacks of this definition? Select one: a. This definition is arbitrary and often misleading because it inadequately captures the various patterns that a contraction may take and can lead to errors because early releases of GDP are subject to repeated revisions as more information becomes available. b. A focus on GDP alone is narrow. It is often better to consider a wider set of measures of economic activity, including employment, income, sales, and industrial production to determine whether a country is indeed suffering a recession. c. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough. d. All of the above
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