Question

Without looking at Table 6.7, return to Figure 6.10. If we define a recession as a significant decline in national

output, can you identify any post-1960 recessions in addition to the 2008-2009 recession? (This requires a judgment

call.)

Fig. 6.10

Short answer

A recession is a period of decline in economic performance in an economy lasting several months.

Step-by-step solution

Step 1. Given Information

Table

Fig

Step 2. Description

Two other major recessions are visible in the form of minor declines in this figure: $1973–1975$ and $1981–1982$. The figure shows two other slowdowns in the form of a flattening of the path to real GDP. These were in $1990-1991$and $2001$.