Which of the following is likely to cause a recession?
A) A fall in unemployment.
B) A rise in investment.
C) A rise in consumption.
D) A fall in total expenditure.

Question

Quizplus · Accepted Answer

A fall in total expenditure can lead to a recession because it means that consumers and businesses are spending less money, leading to decreased demand for goods and services, which can result in lower production, layoffs, and an overall contraction of the economy.

Which of the Following Is Likely to Cause a Recession