An economy recovering from a recession

Question

Quizplus · Accepted Answer

A recession is characterized by a contraction in economic activity, resulting in a decline in Gross Domestic Product (GDP), investment, income and employment. As the economy hits its trough during a recession, it begins to recover and move towards a period of expansion. This expansion phase is marked by an increase in GDP, investment, income and employment, as the economy slowly returns to its pre-recession levels. Therefore, the correct choice is B, which states that the economy moves up from its trough to a period of expansion.

An Economy Recovering from a Recession