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.
Answer (1)
A recession develops as demand and production decrease, primarily leading to an acceleration of the negative effects on the economy. The correct option that describes this is that 'The recession accelerates'. An example of this is the 2008 financial crisis, where reduced consumer spending initiated a downward economic spiral. ;
