Chapter 2, Problem 6MCQ

To determine

The question requires us to identify the period when a recession officially started in the United States.

Explanation of Solution

Generally, the economist and higher authorities give a final call on when and how the recession has begun in an economy. When the economic slowdown stays consistent for two consecutive quarters in a financial year then it is said that economy is facing a recession, but in the United States, the panel of experts at the National Bureau of Economic Research (NBER) makes a final judgment call on recession and give an official date when the recession has began.

Economics Concept Introduction

Recession is a downward phase of a business cycle which mainly represents the less-prolonged market slowdown, low output and high unemployment.