Exhibit 7-4 -Refer to Exhibit 7-4. Did Country a Experience a Recession

Multiple Choice

Exhibit 7-4

-Refer to Exhibit 7-4. Did Country A experience a recession (based on the standard definition) in 2012?

A) Yes, because Real GDP declined during two consecutive quarters in 2012
B) No, because Real GDP did not decline during three consecutive quarters in 2012.
C) Yes, because Real GDP was lower at the end of the year than it was at the beginning of the year.
D) This information cannot be determined because the determination of a recession is based upon GDP not Real GDP.