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Answer: The economy is likely to suffer from a recession
Explanation:
Contraction simply means when a particular economy is in decline. When the real gross domestic product for a certain economy reduces for two quarters, then it is said that recession is taking place in such economy.
When a particular economy plunges into contraction, this will likely lead to more unemployment in the economy. When there's recession, there's a reduction in the level of activity for that economy and there's also the reduction in the demand for goods and services.
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