13
practice testMultiple Choice

Practice Test

Question 13 • Personal Finance and Economics

Does a depression always follow a recession?

Answer
A
No, a depression is indicated when the recession is exceptionally long.
B
Yes, the trough is always considered a depression.
C
No, the economy could decline quickly and bypass recession.
D
Yes, for recovery to occur, the trough must be reached.

Explanation

A depression is generally an exceptionally severe or prolonged economic downturn, often described as a very long recession. It does not necessarily follow every recession; most recessions end without becoming depressions. So the correct choice is “No, a depression is indicated when the recession is exceptionally long.”

AI-written and checked against the verified answer.

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