Reference no: EM133130017

Since 2009  the International Monetary Fund defines a global recession as "a decline in annual per capita real World GDP (purchasing power parity weighted), backed up by a decline or worsening for one or more of the seven other global macroeconomic indicators: Industrial production, trade, capital flows, oil consumption, unemployment rate, per capita investment, and per capita consumption".  

Compare the new and the old definition and answer which of the following statements is false 

1. Under the new definition it is more difficult to classify as a global recession than under the old definition ("a global annual real GDP growth rate of 3.0 percent")
2. The number of identified recessions increases due to the introduction of a new definition.
3. The new definition mixes per capita and global indicators without a clear motivation for the use of economy-wide versus per capita items.