As the economy nears the end of a recession,which of the following would we most likely see?

Question

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As the economy nears the end of a recession, firms are likely to increase their spending on capital goods as they anticipate a rebound in demand from consumers. This increased investment in capital goods can lead to increased productivity, output, and employment in the economy. A decrease in consumer spending (option A) is unlikely since a recovering economy leads to increased consumer confidence and spending. Falling wages relative to output prices (option B) is also unlikely as firms compete for a limited pool of workers, resulting in upward pressure on wages. Interest rates (option D) may increase as the economy recovers due to inflation concerns, but this is not the most likely outcome.

As the Economy Nears the End of a Recession,which of the Following