Which of the following statement fits best for the definition of the word ‘Recession’?
Question and options
Which of the following statement fits best for the definition of the word ‘Recession’?
- A contraction with a general decline in economic activity
- The rate of increase in prices over some time
- Setting limits on purchasing certain high demand items
- None of the given options is correct
Answer and explanation
Correct answer: A - A contraction with a general decline in economic activity
A recession is a contraction phase of the business cycle with a general decline in economic activity (output, income, employment). 'The rate of increase in prices' describes inflation and 'setting limits on purchasing' describes rationing.
Practice for these exams
-
CUSAT CAT LLM
Related question papers
Related exam syllabi
More solved explanations in Indian economy & economic policy
- According to NITI Aayog's 2023 National Multidimensional Poverty Index report, what was Jharkhand's multidimensional poverty headcount ratio in 2019–21?
- According to India’s June 2026 provisional national accounts for FY 2025–26, which sector contributed the most to gross value added at current prices?
- Which organisation compiles India’s official national income estimates through its National Accounts Division?
- Under India’s Periodic Labour Force Survey, a person spends most of the preceding 365 days in the labour force and spends more of that labour-force time seeking or…
- In which year was India’s Planning Commission established?