Answer :
To determine if the economy is in a recession based on the given information, we need to apply the standard economic definition of a recession.
A recession is typically defined as a decline in Gross Domestic Product (GDP) for two consecutive quarters.
Here are the given growth rates:
1. In the second quarter of the year, the GDP growth rate was -75%.
2. In the third quarter of the same year, the GDP growth rate was -1.2%.
Let's analyze the conditions:
- For the second quarter, the GDP growth rate is -75%. This is a negative growth rate.
- For the third quarter, the GDP growth rate is -1.2%. This is also a negative growth rate.
Since both quarters have negative GDP growth rates, this meets the criteria for defining a recession, which requires two consecutive quarters of negative GDP growth.
Therefore, the economy is indeed in a recession.
The correct answer is:
True
A recession is typically defined as a decline in Gross Domestic Product (GDP) for two consecutive quarters.
Here are the given growth rates:
1. In the second quarter of the year, the GDP growth rate was -75%.
2. In the third quarter of the same year, the GDP growth rate was -1.2%.
Let's analyze the conditions:
- For the second quarter, the GDP growth rate is -75%. This is a negative growth rate.
- For the third quarter, the GDP growth rate is -1.2%. This is also a negative growth rate.
Since both quarters have negative GDP growth rates, this meets the criteria for defining a recession, which requires two consecutive quarters of negative GDP growth.
Therefore, the economy is indeed in a recession.
The correct answer is:
True
