Which description best characterizes an 'L-shaped' economic recovery?
Medium
Create a free account to see more questions and build your own quiz.
Get StartedWhich description best characterizes an 'L-shaped' economic recovery?
Options:
- A sharp decline followed by rapid rebound in output
- A slow, prolonged return to trend with little or no growth for many years
- An economy that oscillates between expansion and recession repeatedly
- A temporary fall in output followed by steady recovery to previous trend
Correct answer: A slow, prolonged return to trend with little or no growth for many years
Explanation: An L-shaped recovery involves a steep downturn followed by many years of stagnation and minimal growth; Japan's post-1991 experience is often cited as an L-shaped 'Lost Decade/Decades' example.
Created . Updated .