A severe recession is a depression, a period in which prices fall but there is little demand because few people have money to spend and many are out of work. This condition is part of ________.

Question

Quizplus · Accepted Answer

The business cycle refers to the natural fluctuation of economic activity between periods of expansion and contraction. A severe recession is a part of the contraction phase of the business cycle.

A Severe Recession Is a Depression, a Period in Which