Question

The political candidates keep talking to the citizens about the possibility of a recession. What would MOST likely happen if a country experiences a recession?
A.
Feeling confident in the economy, people will begin to spend money more freely.

B.
Jobs will be more plentiful, and companies will be doing a lot of hiring.

C.
Families will start to purchase larger and more expensive homes.

D.
Businesses will suffer from decreased sales and profits, eventually leading to closure.

Answer 1

Answer:

D.  Businesses will suffer from decreased sales and profits, eventually leading to closure.

Explanation:

An economic recession is defined as a significant decline in economic activity during several months in a row, and whose impacts can be seen in economic indicators like unemployment rate or gross domestic product.

During an economic recession, economic activity actually falls, meaning that the amount of either consumption, investment, exports, imports, or government spending decreases, leading to job losses, income reduction, loss of confidence in the economy, closure of firms, and falls in the tax revenue that the government obtains from economic agents.