Question

Which statement describes economic activity in a recession? A) consumer spending declines B) business production increases C) the employment rate increases D) government regulations decrease

Answer 1

Answer:

The correct answer is A) consumer spending declines.

Explanation:

During recession, the economic activity typically decreases, and as a consequence, the industrial production of goods, services and capital investment also diminishes. Usually, there is an increase in unemployment, which has a negative impact on people's individual economy. As a result, people count with less money to spend, and thus consumer spending declines.

Answer 2

Answer:

A consumer spending declines

Explanation: