What term describes a period of economic decline lasting two quarters or more?

The term that describes a period of economic decline lasting two quarters or more is "recession." This concept is crucial in economics, as it signifies a significant downturn in economic activity across the economy, typically recognized by a decrease in gross domestic product (GDP), employment levels, and consumer spending.

A recession is often accompanied by reduced business activity and increased unemployment, impacting the overall economic landscape. Economists and policymakers closely monitor economic indicators to identify the onset of a recession and to implement measures aimed at stimulating economic growth and recovery.

Understanding this term is essential for grasping the dynamics of economic cycles and can help individuals and businesses make informed decisions during times of economic uncertainty.