Answer :
Answer:
True
Explanation:
Recession is a term that describes a period of a significant reduction in the general economic activities in a country. It is a season of economic downturn characterized by reduced industrial production, a high unemployment rate, low-income levels, and a decline in trading activities. Recession is one of the naturally occurring business cycles.
The declining value of real GDP indicates a recession. Real GDP is nominal or stated GDP adjusted for inflation. A decline in real GDP tells that the economy is slowing down. Two or more consecutive seasons of slow growth that results in low or negative real GDP communicates a recession.
A recession means a significant decline in the aggregate economy, It is the third phase of the business cycle. The above statement is true that in a recession, the real GDP declines.
What is the recession?
Recession is the third term in the business cycle It is also known as the contraction. It defines a period of a significant decline in the general economic activities in a country.
It is a season of the economic downturn which is identified by decreased industrial production, a more unemployment rate, low-income levels, and a reduction in trading activities.
The declining value of real GDP denotes a recession. Real GDP is nominal for inflation. A decrease in real GDP shows that the economy is going down, slowly.
Therefore, the above statement is true.
Learn more about the recession, refer to:
https://brainly.com/question/360200