Which of the following happens during recessions?
A)Firms produce less but invest more.
B)Firms have to increase production because of falling prices.
C)Incomes increase because workers have to work overtime.
D)Many workers are laid off.

Question

Quizplus · Accepted Answer

Recessions are characterized by a slowdown in economic activity, which often leads to firms cutting back on production and laying off workers to reduce costs. Therefore, option D is the correct choice. The other options are not usually observed during recessions.

Which of the Following Happens During Recessions