Question

a recession ________.

a. is unlikely to occur in a free - market economy
b. occurs when an economy slows down for one quarter
c. is a decline in the gross domestic product (gdp) for two or more consecutive quarters
d. only happens every 50 years, on average
e. means that suppliers are likely to increase the prices of their goods and services

Explanation:

To determine the correct answer, we analyze each option:

• Option A: Free - market economies can experience recessions (e.g., the 2008 financial crisis in the US, a free - market economy), so this is incorrect.
• Option B: A recession is defined as a decline in GDP for two or more consecutive quarters, not just one quarter, so this is incorrect.
• Option C: This matches the standard economic definition of a recession, which is a significant decline in economic activity spread across the economy, lasting more than a few months, and typically visible in real GDP, real income, employment, industrial production, and wholesale - retail sales. A common shorthand is a decline in GDP for two or more consecutive quarters.
• Option D: Recessions occur more frequently than every 50 years (e.g., there have been multiple recessions in the US in the past century), so this is incorrect.
• Option E: During a recession, demand typically falls, so suppliers are more likely to lower prices rather than increase them, so this is incorrect.

Answer:

C. is a decline in the gross domestic product (GDP) for two or more consecutive quarters