Economic recession shares all of these characteristics except
(1) Fall in the levels of investment employment
(2) Incomes of wage and interest earners
gradually decline resulting in decreased
demand for goods and services
(3) Investor confidence is adversely affected
and new investments may not be
forthcoming
(4) Increase in the price of inputs due to
increased demand for inputs
Answers
Answer:
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Answer:
option D is the correct answer. (Increase in the price of inputs due to
increased demand for inputs)
Explanation:
A recession is a duration of the monetary decline, signaled with the aid of using a boom in unemployment, a drop withinside the inventory market, and a dip withinside the housing market. A legit recession isn't always declared till the overall fee of products and offerings withinside the country. (known as the Gross Domestic Product or GDP) has been in decline for two or more quarters (six months or extra).
What reasons for a recession?
- High-interest rates, excessive inflation, or both.
- Once actual wages start to shrink, customers lose confidence.
- Real wages" do not purchase as much.
What occurs in the course of a recession?
Like a snowball developing large because it rolls down a hill, a recession gathers strength as one monetary indicator after any other receives stuck up. Here's how that occurs:
- GDP falls.
- Economic activity will become shaky and businesses reduce again in trying to survive.
- These company cutbacks result in layoffs and unemployment.
- Watching different humans get laid off reasons individuals who are nevertheless hired to fear that they may be going to lose their jobs, which ends up in much less purchaser spending.
- Government debt rises because it tries to stabilize the economy.
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