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What is the name of the period when an economy begins to shrink?

A. recession
B. depression
C. recovery
D. prosperity

2 Answers

4 votes

Answer:

A) Recession

Step-by-step explanation:

Correct on edge.

User Quilby
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4 votes

The correct answer is A.

Recession is a significant decline in economic activity that goes on for more than a few months. It combines negative economic growth, a decrease in industrial production, employment, real income and wholesale-retail trade.

Recession is a normal part of a business cycle. There is no way of predicting when and for how long a recession will occur. Some possible predictors of recession are: declining asset prices, the change in unemployment figures and an inverted yield curve.

A depression is a deep and long-lasting recession.

User Rich Desiano
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