In the recession or depression phase of the business cycle,
A) production and employment increase while the inflation rate decreases.
B) production, employment, and the inflation rate increase.
C) production, unemployment, and the inflation rate increase.
D) production, employment, and the inflation rate decrease.

Question

Quizplus · Accepted Answer

During a recession or depression phase of the business cycle, economic activities slow down, leading to decreases in production and employment, while the inflation rate typically decreases due to reduced demand for goods and services.

In the Recession or Depression Phase of the Business Cycle