What does a negative economic growth rate for two consecutive quarters officially signify in macroeconomic terminology?

💡 Solution & Explanation

A technical recession is officially defined by economists as a period of declining macroeconomic activity characterized by negative Gross Domestic Product growth spanning at least two consecutive quarters. An economic depression represents a much more severe and prolonged downturn involving multi-year output contractions and extremely high structural distress. Disinflation refers merely to a slowing down in the rate of inflation rather than a contraction in real economic output. Structural unemployment arises from fundamental shifts in technology and industry demands mismatching worker skills.