Which best describes how a recession develops as demand and production decrease? A. The recession enters a recovery period.
B. The recession slows.
C. The recession accelerates.
D. The recession starts and stops.
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Which best describes how a recession develops as demand and production decrease? A. The recession enters a recovery period.
B. The recession slows.
C. The recession accelerates.
D. The recession starts and stops.
The correct answer is C. The recession accelerates.
Explanation: A recession typically develops when there is a significant decrease in demand for goods and services. As consumer spending drops, production slows down because businesses respond to lower sales by cutting back on output. This cycle can lead to an acceleration of the recession as reduced production results in job losses, further decreasing demand. Thus, the negative effects become more pronounced, which is why the term “accelerates” is appropriate. If you need more detailed assistance, feel free to check the extended services page!