MAH LLB 3 Year CET 2026 (1 April Shift 1)
What is the name for a period of sustained economic decline?
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Answer: Option A — Recession
Detailed Solution
A recession is a period of significant, sustained decline in economic activity, commonly identified as two consecutive quarters of falling real GDP, with rising unemployment and lower output and spending.
Stagnation is a period of slow or zero growth, not a decline. A depression is an extreme form of recession (very severe and lasting years, like the 1930s). Deflation is a fall in the general price level, not in economic activity.
Quick tip
Remember: Recession = sustained decline (two quarters of falling GDP); Depression = extreme, very long recession; Deflation = falling prices.
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Basic Concepts of Economics — Preparation
This question tests your understanding of Basic Concepts of Economics, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers the basic ideas of economics: microeconomics and macroeconomics, demand and supply, elasticity, utility and consumption, production and costs, types of markets (perfect competition, monopoly, oligopoly and monopolistic competition), and types of economies. Questions usually test definitions and laws, such as the law of demand, the law of diminishing marginal utility, and the difference between a monopoly and an oligopoly. Be clear about cases such as Giffen goods, which break the law of demand. Adam Smith, author of 'The Wealth of Nations' (1776), is known as the father of economics. Practise the basic economic concepts questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.