Question

A recession is

A. Consecutive periods of economic fluctuation
B. Consecutive periods of deflation
C. Consecutive periods of inflation
D. Consecutive periods of economic depression

Answer 1

B. Consecutive periods of deflation

Explanation:

Recession is a general slow down in economic activity. Its main reasons are prolonged periods of deflation, a financial crisis or an adverse supply shock. Inflation falls during recession which is usually preceded by long and consecutive periods of deflation.

Answer 2

B. Consecutive periods of deflation

Explanation:

A recession is : Consecutive periods of deflation

Recession happens in an economy when economic activity and growth is slowed down.

There are many reasons for recessions but main reasons are lengthy periods of deflation, or a financial crisis.

During recession time, there are few jobs and many companies remove their employees also due to financial crunch.