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Since 2009 the International Monetary Fund defines a global recession as a decline in annual percapita real World GDP (purchasing power parity weighted), backed up
Since 2009 the International Monetary Fund defines a global recession as "a decline in annual percapita real World GDP (purchasing power parity weighted), backed up by a decline or worsening for one or more of the seven other global macroeconomic indicators: Industrial production, trade, capital flows, oil consumption, unemployment rate, percapita investment, and percapita consumption".
Compare the new and the old definition and answer whichof the followingstatementsisfalse
- Under the new definition it is more difficult to classify as a global recession than under the old definition ("a global annual real GDP growth rate of 3.0 percent")
- The number ofidentifiedrecessionsincreases due totheintroduction of a newdefinition.
- The new definition mixes per capita and global indicators without a clear motivation for the use of economy-wide versus per capita items..
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