An economic downturn is called what?

• A. Pearl Harbor
• B. Recession
• C. Propaganda
• D. Reconstruction

Answer: (B)

The main concept here is naming the term used for a period when the economy slows down. An economic downturn is called a recession. It refers to a stretch of time when overall economic activity declines, often visible through falling GDP, reduced hiring, lower spending, and weaker production. In many contexts, a recession is described using criteria like two consecutive quarters of shrinking GDP, though economists may look at a broader mix of indicators to confirm the downturn.

The other options don’t fit because they describe different ideas: Pearl Harbor is a historical military attack, propaganda is biased information used to influence opinions, and reconstruction means rebuilding after damage. So the term that captures a downturn in economic activity is recession.