Michigan Test for Teacher Certification (MTTC) Social Studies Practice Exam 2026 - Free MTTC Social Studies Practice Questions and Study Guide

A recession is technically defined as two successive quarters of decline in real Gross Domestic Product (GDP). This measurement is widely used by economists and organizations, such as the National Bureau of Economic Research (NBER), to identify points of economic contraction.

The rationale behind this definition is that a decline in GDP over two consecutive quarters reflects a significant and sustained drop in overall economic activity, indicating that the economy is not only slowing down but is indeed in contraction. This benchmark helps in assessing the health of an economy and in making comparative analyses over time.

While other definitions may reference variations in the duration or depth of an economic downturn, the two-quarter standard is a straightforward and widely recognized measure that allows for clear demarcation of recessionary periods in economic data.