Which statement best describes the beginning of a recession?
A) Production and unemployment both rise.
B) Production rises and unemployment falls.
C) Production falls and unemployment rises.
D) Production and unemployment both fall.

Question

Quizplus · Accepted Answer

A recession is characterized by a significant decline in economic activity across the economy, which leads to a decrease in production, sales, revenue, employment, and income. Therefore, the beginning of a recession is marked by a fall in production, accompanied by a rise in unemployment as companies reduce their workforce or cut wages and benefits to reduce costs. Option A is incorrect because a rise in both production and unemployment indicates an expanding economy. Option B is incorrect because a rise in production and a fall in unemployment is a sign of economic growth and expansion. Option D is also incorrect because a fall in both production and employment may occur during a depression, which is a more severe and prolonged period of economic decline.

Which Statement Best Describes the Beginning of a Recession