ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Which of the following necessarily occurs during an economic recession? Cost-push inflation decreases.

Detailed explanation-2: -This usually results in job losses and an increase in the unemployment rate. While there is no single definition of recession, it is generally agreed that a recession occurs when there is a period of reduced output and a significant increase in the unemployment rate.

Detailed explanation-3: -Unemployment tends to rise rapidly and often remains elevated during a recession. With the onset of the recession, as companies face rising costs, stagnant or falling revenues and increased pressure to service debts, they are starting to lay off workers to cut costs.

Detailed explanation-4: -A recession, sometimes called a contraction, is a period of economic slowdown and is often marked by high rates of unemployment, plunging stock prices, lower corporate profitability, and consumer anxiety.

Detailed explanation-5: -Which of the following will occur during a recession? Personal income falls; investment spending falls; corporate profits fall. Which of the following is true about the unemployment rate at the end of a recession? The fluctuations of an economy are regular and can be predicted.