Which of the following is a characteristic of a recession?

A recession is typically characterized by a decline in economic activity, which is most clearly measured by a decrease in Gross Domestic Product (GDP). When an economy enters a recession, it often experiences a contraction in consumer spending, business investment, and overall economic output. This downturn in GDP is a key indicator of a recession, reflecting reduced economic performance and potential negative impacts on employment and consumer confidence.

In contrast, increased consumer spending and higher employment rates are generally associated with periods of economic growth, not recession. Similarly, a rising stock market tends to indicate investor confidence and robust economic conditions. Therefore, the correct answer highlights a fundamental aspect of recessions, which is the observed decline in GDP during such economic downturns.