What term refers to a period of economic decline that lasts for six months or longer?

The term that refers to a period of economic decline lasting six months or longer is "recession." A recession is characterized by a significant decline in economic activity across the economy, which is visible in various indicators such as GDP, income, employment, manufacturing, and retail sales. This decline typically persists for two consecutive quarters, thus meeting the six-month duration criterion.

Understanding recessions is crucial for managers and businesses, as they often need to adapt their strategies, operations, and financial planning in response to changes in consumer demand and market conditions during such periods.

The other options, while related to economic conditions, have distinct definitions. A depression is a more severe and prolonged downturn than a recession, characterized by a significant decrease in economic activity and lasting for several years. Stagnation refers to a prolonged period of slow or minimal economic growth, while recovery signifies the period following a recession where the economy starts to improve. Understanding these definitions helps clarify the nuances between various economic cycles.