Answered

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The GDP in the second quarter of the year had a growth rate of -75%. In the third quarter, the GDP had a growth rate of -1.2%. By definition, this economy is in a recession.

True
False

Sagot :

GinnyAnswer
To determine if the economy is in a recession based on the given information, we need to apply the standard economic definition of a recession.

A recession is typically defined as a decline in Gross Domestic Product (GDP) for two consecutive quarters.

Here are the given growth rates:
1. In the second quarter of the year, the GDP growth rate was -75%.
2. In the third quarter of the same year, the GDP growth rate was -1.2%.

Let's analyze the conditions:
- For the second quarter, the GDP growth rate is -75%. This is a negative growth rate.
- For the third quarter, the GDP growth rate is -1.2%. This is also a negative growth rate.

Since both quarters have negative GDP growth rates, this meets the criteria for defining a recession, which requires two consecutive quarters of negative GDP growth.

Therefore, the economy is indeed in a recession.

The correct answer is:
True
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