Earlier this year, when America first sneezed, the European Central Bank (along with most private-sector economists) argued that the euro area was insulated from America's slowdown and had little to worry about. This seems to have been wrong. In Germany there are fears about recession as business investment and retail¹ sales tumble. Recent figures confirmed that Germany's GDP stagnated² in the second quarter. Italy's GDP fell in the second quarter, and although growth has held up better in France and Spain, the growth in the euro area as a whole was close to zero in the quarter. Nobody is forecasting an actual recession in the euro area this year, but it is no longer expected to provide an engine for world growth.
As for Japan, it is probably already in recession. Japan's GDP grew slightly in the first quarter. Persistent³ deflation continues to be a severe problem. A revised measure of Japan's consumer-price index, to be published soon, is likely to show that deflation is worse than had been thought. （170 words）
1. What does the 1st sentence mean?
A. Earlier this year, America suffered from a cold.
B. The European Central Bank believed it wouldn’t be affected⁴ by US.
C. The European Central Bank had little to worry about.
D. The euro area was safe and sound.

2. What were Germany and Italy's GDP in the second quarter?
A. stagnated
B. fell 
C. suffered
D. halted and deceased

3. What was the economic situation in France and Spain?
A. Much better.
B. Somewhat better.
C. Close to zero.
D. Much worse.

4. Which of the following is NOT TRUE about Japan’s economy?
A. It is perhaps already in decline.
B. Japan's GDP grew slightly in the first quarter.
C. Deflation continues to be a severe problem.
D. It is worse than that of US and Europe.

5. The best title for the passage is
A. The world economic situation 
B. The world economic recession
C. The worse World economic situation 
D. The reason for world economic recession

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