In the recession or depression phase of the business cycle, each of the following generally occurs except
A) real GDP decreases.
B) the investment spending share of real GDP increases.
C) unemployment increases.
D) inflation decreases.

Question

Quizplus · Accepted Answer

During a recession or depression, investment spending typically decreases as businesses cut back on expansion and new projects due to economic uncertainty, not increases.

In the Recession or Depression Phase of the Business Cycle