(Answered) A recession is defined as a decrease in GDP. True FalseA recession is defined as a decrease in GDP….

3. Why do economic agencies like the NBER use broader criteria than just GDP?
Because GDP is subject to revisions and can miss short-term trends. Agencies like the NBER use multiple monthly indicators—employment, industrial production, real income, and sales—to capture breadth and timing. This approach reduces false signals, helps date peaks and troughs more accurately, and reflects the economy’s depth, duration, and scope beyond a single quarterly GDP estimate.