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O Levels Economics (2281)•2281/12/M/J/18
Question 20 from 2281/12/M/J/18

Explanation

Recession Defined by Two Consecutive Negative GDP Quarters

Steps:

  • Recall recession as two consecutive quarters of negative real GDP growth.
  • Review table data for each country's quarterly GDP changes.
  • Check for patterns: positive growth indicates expansion; isolated negatives do not qualify.
  • Identify country with two back-to-back negative quarters.

Why D is correct:

  • Country D shows negative GDP growth in two consecutive quarters, matching the standard economic definition of a recession.

Why the others are wrong:

  • A: All quarters show positive GDP growth, indicating economic expansion.
  • B: Only one quarter of negative growth, followed by positive, so no recession.
  • C: Mixed but no two consecutive negative quarters, avoiding recession criteria.

Final answer: D

Topic: Economic growth

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