SIE Exam Question 773: Answer and Explanation

Question: 773

If real GDP declined last quarter, how many more consecutive quarters of decline would be needed to be classified as an economic recession?

• A. 1 quarter
• B. 2 quarters
• C. 3 quarters
• D. 4 quarters

Correct Answer: A

Explanation:

2 quarters - 1 quarter = 1 quarter

An economic recession is defined as a decline in real GDP for 2 or more consecutive quarters.