Which of the following is most likely to occur during recession?
A)Increase in wage rate
B)Decrease in potential real GDP
C)Increase in the market rate of interest
D)Decrease in the average price level
E)Decrease in the government transfer payments

Question

Quizplus · Accepted Answer

During a recession, demand generally falls, leading to a decrease in the average price level as businesses lower prices to attract consumers.

Which of the Following Is Most Likely to Occur During