Identifying Recession Periods via GDP Decline

Steps:

• Define recession as two consecutive quarters of negative real GDP growth.
• Examine GDP data for each quarter to identify declines.
• Check for consecutive negative quarters matching the choices.
• Select the option aligning with quarters 3 and 4 showing declines.

Why C is correct:

• A recession requires two consecutive quarters of declining GDP, which occurs in quarters 3 and 4 per the data.

Why the others are wrong:

• A: Quarters 1 and 2 show growth or isolated decline, not consecutive negatives.
• B: Quarters 2 and 3 lack two consecutive declines.
• D: Not all quarters exhibit negative growth; only 3 and 4 do.

Final answer: C