Which of the following terms refers to a significant decline in economic activity leading to job loss?

The term that refers to a significant decline in economic activity leading to job loss is recession. A recession is typically defined as a period during which there is a decline in gross domestic product (GDP) for two consecutive quarters. During this time, businesses may reduce production due to lower consumer demand, which often results in layoffs and increased unemployment rates. Economic indicators such as decreased spending, lower earnings, and reduced investment can characterize a recession.

The other terms relate to economic situations but do not specifically denote a significant decline in overall economic activity over an extended period. For instance, stagnation refers to a prolonged period of little or no growth in an economy, while unemployment describes the condition of individuals being without work despite actively seeking employment. Depression, on the other hand, is a more severe and prolonged downturn than a recession but is not the standard term for the initial significant decline in economic activity. Therefore, recession is the most accurate term in this context.