How often does the US economy typically suffer a recession, excluding periods of war?

The correct answer indicates that historically, the US economy has typically experienced a recession approximately every 40 months, which translates to a little over three years. This figure is derived from analyzing economic cycles over prolonged periods and is supported by various studies that examine the frequency, duration, and severity of economic downturns, excluding periods of war when recessions may occur more frequently due to the impacts of military expenditure and societal disruption.

Understanding this cycle is crucial for someone preparing for the Chartered Market Technician (CMT) examination, as it gives insights into market behaviors, investment strategies, and economic indicators that follow or precede such downturns. Recognizing the historical patterns of recessions helps analysts forecast potential market transitions and make informed investment decisions during different economic phases.