Which best describes how a recession develops as demand and production decrease?

Question

The recession accelerates.

Prof. Vaughn Howell · Accepted Answer

The recession accelerates.Explanation:Recession in the economy is demonstrated as the period of reduced economic activity with negative real GDP for two consecutive quarters. As the recession develops, demand and production continue to decrease as people do not have jobs and therefore they cannot afford to purchase goods and as a consequence, the producers reduce the prices and production(due to reduced demand). Thus, the ‘recession accelerates’ if the government forces do not get back to track automatically without any government interruption.

Prof. Vaughn Howell · Answer

An economic recession is a process that usually has a triggering event, but then grows as a domino effect. For example, we can cite the collapse of Lehman Brothers Bank in the 2008 crisis as the initial event of what became a major crisis and that drove the developed world into recession. All this happens because of the reversal of expectations. When a serious event happens, all other economic agents revert their expectations about the economy and seek to protect their business. The companies stop investing, the consumers reduce to the maximum their consumption. All seek to save until the crisis subsides.The consequence is that the productive activity falls and the economy stagnates, because the recession self feeds.

Prof. Vaughn Howell · Answer

C. The recession acceleratesExplanation:correct on edgen2020

Prof. Vaughn Howell · Answer

CExplanation: The recession feeds on itself

Prof. Vaughn Howell · Answer

cExplanation:the recession accelerates

Prof. Vaughn Howell · Answer

The correct answer is C. The recession accelerates.ExplanationThe recession is a term used in economics to express the economic decline caused by the decrease in demand, or the decrease in supply. Generally, there is a decrease in the production, employment, and income of domestic economies, which in turn causes further declines in demand and investment, prolonging the recessive process. Therefore, when demand or production decreases, the recession tends to extend, deepen and accelerate, indicating that the domestic economy of the affected country will be in decline. So, the correct answer is C. The recession accelerates.

Prof. Vaughn Howell · Answer

The correct answer is C. The recession feeds on itself.Recession occurs when business stops to expand, unemployment rate decreases, prices on housing declines, the GDP diminishes.During recession, prices of unemployment increase while the wages decrease which leads to less income which is to be spend by consumers.

Prof. Vaughn Howell · Answer

The option C is correct. The recession feeds on itself describes a recession develops as demand and production decrease.  Further Explanation:Recession is a phase in which the growth rate is declined, the unemployment rate is high, the production is less. If the country faces a recession period, then the country is not more survive to meet the basic needs of the citizens of the country.    Justification for the correct and incorrect A.The recession accelerates: This option is incorrect.If the recession accelerates, it means the recession continues for a long period. If the recession accelerates, the demand does not develop and produce is not decreased.  B.The recession spirals out of control: This option is incorrect.  The recession spirals out of control means all factor is decreased. The demand is also decreased, this is not the correct option.  C.The recession feeds on itself: This option is correct.The recession develops demand and reduces production itself. This is the correct option.   D.The recession starts and stops: This option is incorrect.This is not best describes to develop demand and decrease production. This is not the correct option.  Learn more:1.Learn more about demand and supply2.Learn more about demand and type of goods3.Learn more about goods production  Answer details:Grade: Middle SchoolSubject: EconomicsChapter: RecessionKeywords: recession, develops demand, decrease production, accelerates, spirals out of control, feed, starts, and stops, long period, basic needs of the citizens of the country.

Prof. Vaughn Howell · Answer

The recession accelerates. Explanation: Recession in the economy is demonstrated as the period of reduced economic activity with negative real GDP for two consecutive quarters. As the recession develops, demand and production continue to decrease as people do not have jobs and therefore they cannot afford to purchase goods and as a consequence, the producers reduce the prices and production(due to reduced demand). Thus, the ‘recession accelerates’ if the government forces do not get back to the track automatically without any government interruption.

Prof. Vaughn Howell · Answer

The recession acceleratesExplanation:Recession is an economic phase where economy is generally slow with low GDP and high inflation. In order to avoid recession it is important that market forces run and move on their own without government influence. If an economy is in recession, a decrease in demand and production will lead to more panic and shortage that will accelerate recession.

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Which best describes how a recession develops as demand and production decrease?

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