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What is a common rule of thumb for defining a recession?
What is a common rule of thumb for defining a recession?
- A decrease in industrial production
- Two consecutive quarters of negative GDP growth (correct)
- A decline in retail sales
- A decrease in nonfarm payrolls
According to the NBER, how do they measure recessions?
According to the NBER, how do they measure recessions?
- By focusing solely on GDP growth
- By considering the stock market performance
- By analyzing international trade data
- By looking at nonfarm payrolls, industrial production, and retail sales (correct)
What is the NBER's stance on the measures contributing to the recession determination process?
What is the NBER's stance on the measures contributing to the recession determination process?
- There is no fixed rule about what measures contribute information to the process or how they are weighted (correct)
- Only GDP growth is considered in the recession determination process
- Nonfarm payrolls are the primary measure used for recession determination
- Retail sales are the most important indicator for recession determination
How often were advanced economies affected by recessions between 1960 and 2007?
How often were advanced economies affected by recessions between 1960 and 2007?
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What effect can declining consumer demand have during a recession?
What effect can declining consumer demand have during a recession?
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