Final answer:
A recession corresponds to a period of decreasing prices, due to higher unemployment and reduced demand for goods, as seen in historical events like the Great Depression and the Great Recession.
Step-by-step explanation:
In the context of inflation, deflation, and recession, a recession would most closely correspond to a period of stabilizing or decreasing prices, which is option c) A period of decreasing prices. This is because during a recession, high levels of unemployment are typically present and the overall demand for goods falls, leading to a reduction in the price level. For example, historically, times such as the Great Depression and the Great Recession of 2008-2009 were characterized by low inflation rates or even deflationary periods. Conversely, periods of rapid economic growth often result in higher inflation, with lower unemployment rates.