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Economic recession is characterized by all of the following except _____
- a)Decline in investments, employment
- b)Increase in the price of inputs due to increased demand for inputs
- c)Investors confidence is shaken
- d)Demand for goods, services decline
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Economic recession is characterized by all of the following except ___...
Explanation:
Economic recession refers to a period of economic decline, characterized by a decline in GDP, employment, and investments. It is a time when the economy is struggling, and businesses are facing challenges. However, not all factors contribute to economic recession. The correct answer is option B, which is "Increase in the price of inputs due to increased demand for inputs." This means that when the price of inputs increases, it is a sign of a growing economy, and this factor does not contribute to economic recession.
Factors that contribute to economic recession include:
Decline in investments: During a recession, investors become more cautious and are less likely to invest in the market. This leads to a decline in investments, which can cause a ripple effect throughout the economy.
Employment: During a recession, businesses may cut back on hiring, or even lay off workers, which leads to a decline in employment. This can also lead to a decrease in consumer spending, which can further impact the economy.
Investor confidence: A recession can shake the confidence of investors, which can cause them to withdraw their investments from the market. This can further contribute to the decline in investments.
Demand for goods and services: During a recession, demand for goods and services may decline, as consumers have less disposable income to spend. This can cause businesses to cut back on production, which can impact the economy.
In conclusion, economic recession is a complex phenomenon that is characterized by several factors. While an increase in the price of inputs may be a sign of a growing economy, it does not contribute to economic recession.
Economic recession refers to a period of economic decline, characterized by a decline in GDP, employment, and investments. It is a time when the economy is struggling, and businesses are facing challenges. However, not all factors contribute to economic recession. The correct answer is option B, which is "Increase in the price of inputs due to increased demand for inputs." This means that when the price of inputs increases, it is a sign of a growing economy, and this factor does not contribute to economic recession.
Factors that contribute to economic recession include:
Decline in investments: During a recession, investors become more cautious and are less likely to invest in the market. This leads to a decline in investments, which can cause a ripple effect throughout the economy.
Employment: During a recession, businesses may cut back on hiring, or even lay off workers, which leads to a decline in employment. This can also lead to a decrease in consumer spending, which can further impact the economy.
Investor confidence: A recession can shake the confidence of investors, which can cause them to withdraw their investments from the market. This can further contribute to the decline in investments.
Demand for goods and services: During a recession, demand for goods and services may decline, as consumers have less disposable income to spend. This can cause businesses to cut back on production, which can impact the economy.
In conclusion, economic recession is a complex phenomenon that is characterized by several factors. While an increase in the price of inputs may be a sign of a growing economy, it does not contribute to economic recession.
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Community Answer
Economic recession is characterized by all of the following except ___...
As there is recession inflation cannot happen the seller will have to sell those goods in lesser value, hence there will be decrease in the price of inputs due to increased demand for inputs.
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Economic recession is characterized by all of the following except _____a)Decline in investments, employmentb)Increase in the price of inputs due to increased demand for inputsc)Investors confidence is shakend)Demand for goods, services declineCorrect answer is option 'B'. Can you explain this answer?
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