193k views
4 votes
Periods of declining economic activity during which time business production decreases, unemployment rises, and many consumers have less money to spend are known as

User George L
by
8.3k points

1 Answer

5 votes

Final answer:

A recession is a period of declining economic activity characterized by decreased business production, rising unemployment, and reduced consumer spending.

Step-by-step explanation:

A recession is a period of declining economic activity during which time business production decreases, unemployment rises, and many consumers have less money to spend. It usually lasts for six months to a year and is marked by contractions in various sectors of the economy.

For example, during a recession, companies may lay off workers, resulting in higher unemployment rates. Additionally, people may have less disposable income, leading to reduced consumer spending.

Key concepts:

  • Recession: A period of decline in total output, income, employment, and trade.
  • Business production decrease: Companies produce less during a recession.
  • Unemployment rise: Layoffs and job cuts lead to higher unemployment rates.
  • Consumer spending reduction: People have less money to spend, impacting the economy.
User Luislhl
by
9.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories