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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?
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Economic recession is characterized by all of the following except a) ...
Economic Recession: Characteristics and Exceptions
Introduction: Economic recession is a phase of the business cycle where there is a decline in economic activity. It is characterized by a slowdown in economic growth, decline in investments, employment, and demand for goods and services.
Characteristics:
1. Decline in Investments: During a recession, there is a decline in investments as businesses and individuals become hesitant to invest in the economy due to uncertainties about future economic conditions.
2. Employment: Another characteristic of a recession is a decline in employment opportunities. As businesses cut back on investments and production, they also tend to reduce their workforce, leading to higher unemployment rates.
3. Investors Confidence: A recession can also shake investors' confidence in the economy. This can lead to a decline in the stock market, as investors sell off their shares due to fears of economic uncertainty.
4. Decline in Demand: A recession is also characterized by a decline in demand for goods and services. Consumers tend to cut back on spending during a recession, which can lead to a further decline in economic activity.
Exceptions:
Increase in the price of inputs due to increased demand for inputs is not a characteristic of a recession. It is more likely to occur during times of economic growth when there is an increase in demand for goods and services, leading to an increase in the demand for inputs such as raw materials, labor, and capital. This can lead to an increase in the prices of inputs, which can then lead to an increase in the prices of goods and services.
Introduction: Economic recession is a phase of the business cycle where there is a decline in economic activity. It is characterized by a slowdown in economic growth, decline in investments, employment, and demand for goods and services.
Characteristics:
1. Decline in Investments: During a recession, there is a decline in investments as businesses and individuals become hesitant to invest in the economy due to uncertainties about future economic conditions.
2. Employment: Another characteristic of a recession is a decline in employment opportunities. As businesses cut back on investments and production, they also tend to reduce their workforce, leading to higher unemployment rates.
3. Investors Confidence: A recession can also shake investors' confidence in the economy. This can lead to a decline in the stock market, as investors sell off their shares due to fears of economic uncertainty.
4. Decline in Demand: A recession is also characterized by a decline in demand for goods and services. Consumers tend to cut back on spending during a recession, which can lead to a further decline in economic activity.
Exceptions:
Increase in the price of inputs due to increased demand for inputs is not a characteristic of a recession. It is more likely to occur during times of economic growth when there is an increase in demand for goods and services, leading to an increase in the demand for inputs such as raw materials, labor, and capital. This can lead to an increase in the prices of inputs, which can then lead to an increase in the prices of goods and services.
Community Answer
Economic recession is characterized by all of the following except a) ...
Option (B) is the answer.As it is characteristic of peak.
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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?
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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? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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