Defining Recession in Economics

Steps:

• Recall that economic growth is measured by changes in GDP over time.
• Identify the standard definition: a recession occurs with two straight quarters of declining GDP.
• Match the question's description—two consecutive quarters of negative growth—to this definition.
• Eliminate options that don't fit this specific criterion.

Why D is correct:

• Recession is defined as two consecutive quarters of negative GDP growth, directly matching the question.

Why the others are wrong:

• A. Budget surplus: Excess government revenue over spending, unrelated to overall economic growth.
• B. Current account deficit: Trade imbalance where imports exceed exports, not tied to GDP contraction.
• C. Inflation: Rising prices reducing purchasing power, which can occur during growth or recession.

Final answer: D