Question

a recession ________. a. only happens every 50 years, on average b. is unlikely to occur in a free - market economy c. means that suppliers are likely to increase the prices of their goods and services d. occurs when an economy slows down for one quarter e. is a decline in the gross domestic product (gdp) for two or more consecutive quarters

Explanation:

• Option A: Recessions occur more frequently than every 50 years (e.g., the US had multiple recessions in the 20th/21st centuries), so A is wrong.
• Option B: Free - market economies can experience recessions (e.g., the 2008 financial crisis in the US, a free - market - oriented economy), so B is wrong.
• Option C: In a recession, demand is low, so suppliers are more likely to lower prices, not increase, so C is wrong.
• Option D: A recession is defined as a decline in GDP for two or more consecutive quarters, not one quarter, so D is wrong.
• Option E: This matches the standard economic definition of a recession: a decline in the gross domestic product (GDP) for two or more consecutive quarters.

Answer:

E. is a decline in the gross domestic product (GDP) for two or more consecutive quarters