Question

As we read these days, many world economies are passing through the recession at present. When can an economy be "in a recession"?
A) When a decline occurs in almost all major economic activities.
B) When the inflation reaches a very high rate or becomes double-digit inflation.
C) When big financial scams and Frauds start taking place.

• A. Only A
• B. Only B
• C. Only C
• D. All the three

Answer 1

Answer: (A)

Only A

As we read these days, many world economies are passing through the recession at present. An economy is said to be in a recession when a decline occurs in almost all major economic activities. Also, it is generally identified by a fall in GDP in two successive quarters.

Thus, the correct answer is A.