Question

Q.25:-Which of the following statements is not true about recession ?
Periods of declining economic activity are referred to as recessions
During recessions, businesses decrease production, unemploymentk
rises, and many consumers have less money to spend
Brands that increase advertising during a recession, when competitors
are cutting back, can improve market share and return on investment
at lower cost
During recession, businesses sentiments are generally positive
None of these

Answer 1

Answer:

Which of the following statements is not true about recession ?

Explanation:

• What is recession? Recession is the term which is related to economics. Recession is the business cycle contraction. When there is decline in economic activity it is known to be recession.
• It produces the decline in output, consumer demand and employment in economy.
• The most common example of recession was financial crisis in 2008.
• In simple words period of declining economic activity is referred as recession. Which is option number 1. So option 1 is true for recession.
• Recession is period of higher unemployment and decrease in production, which is option 2. So option 2 is true.
• Option 3 is also correct for recession that brand who increase advertising during a recession, when competitors are cutting back can improve market.
• Option 4 is not correct for recession, as the business sentiment are generally negative during recession.

Hence option 4 is not true for recession.

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