Question

Which best describes how a recession develops as demand and production decrease? The recession enters a recovery period. The recession slows. The recession accelerates. The recession starts and stops.

Answer 1

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.