A recession is technically defined as:

A One quarter of negative growth

B Two consecutive quarters of declining real GDP

C Rising unemployment only

D Falling stock prices

✓ Correct Answer: Option B

Classic definition: two consecutive quarters of real GDP decline (though NBER uses broader criteria).

💡 Why is B) the correct answer?

The correct answer to the question "A recession is technically defined as:" is Option B: Two consecutive quarters of declining real GDP.

The other options — A) One quarter of negative growth, C) Rising unemployment only, D) Falling stock prices — are incorrect for this CFA Exam Prep question. As explained above: Classic definition: two consecutive quarters of real GDP decline (though NBER uses broader criteria).

📚 About This CFA Exam Prep Practice Question

This 1-level CFA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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A recession is technically defined as:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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