A __________ is a very severe recession that is usually accompanied by deflation.
A) stagflation
B) retraction
C) depression
D) dissolution

Question

Quizplus · Accepted Answer

A depression is a severe and prolonged economic downturn characterized by a decrease in GDP, high unemployment, and low consumer spending. It is often accompanied by deflation, which means a decrease in the price of goods and services. Stagflation refers to a situation where there is high inflation combined with high unemployment, while retraction and dissolution are not widely used terms in economics in this context.

A __________ Is a Very Severe Recession That Is Usually