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.
Which best describes how a recession develops as demand and production decrease?
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The correct answer is C. The recession accelerates.
A recession typically begins when demand for goods and services decreases, leading to a decline in production. As businesses cut back on production in response to reduced demand, it can lead to further layoffs and lower consumer spending, creating a cycle of worsening economic conditions. This process indicates that the recession is accelerating rather than slowing down or stopping. If you have more questions or need further clarification, feel free to ask!