ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic output, employment, and consumer spending drop in a recession. Interest rates are also likely to decline as the central bank (such as the U.S. Federal Reserve Bank) cuts rates to support the economy.

Detailed explanation-2: -Consumer Spending During a recession, retail sales generally decrease as people have less money to spend. As retail sales decline, the impact on the economy can be substantial. Businesses may have to lay off workers to reduce costs, and some businesses may close.

Detailed explanation-3: -During recessions, of course, consumers set stricter priorities and reduce their spending. As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments.

Detailed explanation-4: -That said, most consumers across the four countries we researched believe that we are in a recession-and say that they are spending more and saving less.