@charlotte123

What happens to an economy during a recession cycle?

A. There is a collapse in the economy as it moves to a new specialization.
B. There is a general slowdown in the economy.
C. There are improvements in the employment and production rates.
D. There is high employment and rising demand.

Question

@charlotte123 

What happens to an economy during a recession cycle?

 		A.	There is a collapse in the economy as it moves to a new specialization.
 		B.	There is a general slowdown in the economy.
 		C.	There are improvements in the employment and production rates.
 		D.	There is high employment and rising demand.

anonymous · Answer

i think its a or b

charlotte123 · Answer

A recession occurs when the economy slows down for at least two quarters. During that time incomes are reduced - There is a shortage of finance - The cost of mortgages increases with increase in interest rates and there is a general collapse in confidence of finance sector.
 Thus - The answer is B - There is a general slowdown in the economy.