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Chapter 5 questions

For Chapter 5 Unit questions Click Price-output determination under different market forms
QUESTION
Q2) A significant decline in general economic activity extending over a period of time is

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Correct

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Solution:
Recession is a part of the larger business cycle, it specifically refers to a significant decline in economic activity over a period of time.

Answer given in module is option (b)
The contraction phase is also a term used in reference to the business cycle, but it is a more general term that refers to the period of time during which economic activity is declining.
It does not necessarily indicate the severity or duration of the decline.
Correct option is (c)