What term describes a slowdown in a nation's economy?

What term describes a slowdown in a nation's economy?

• A. Recession
• B. Depression
• C. Stagnation
• D. Recovery

Answer: (A)

The term that describes a slowdown in a nation's economy is "recession." This occurs when there is a significant decline in economic activity across the economy, lasting more than a few months. Indicators such as falling GDP, reduced consumer spending, higher unemployment rates, and decreasing industrial production characterize a recession. It's important to note that a recession reflects a broader, more widespread economic downturn compared to other terms. While "depression" refers to a prolonged and severe downturn in economic activity, it occurs less frequently and is more extreme than a recession. "Stagnation," on the other hand, suggests a period of little to no economic growth, which can precede or follow a recession but does not necessarily indicate a slowdown per se. "Recovery" refers to the phase following a recession where economic activity begins to increase again, signaling a return to growth.

The term that describes a slowdown in a nation's economy is "recession." This occurs when there is a significant decline in economic activity across the economy, lasting more than a few months. Indicators such as falling GDP, reduced consumer spending, higher unemployment rates, and decreasing industrial production characterize a recession.

It's important to note that a recession reflects a broader, more widespread economic downturn compared to other terms. While "depression" refers to a prolonged and severe downturn in economic activity, it occurs less frequently and is more extreme than a recession. "Stagnation," on the other hand, suggests a period of little to no economic growth, which can precede or follow a recession but does not necessarily indicate a slowdown per se. "Recovery" refers to the phase following a recession where economic activity begins to increase again, signaling a return to growth.