ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Predictably, consumers expect to decrease net spending on nonessentials such as clothing, increase deal hunting, and substitute lower-cost brands and alternatives. The category that consumers across multiple countries most consistently point to as an area where they are likely to reduce their spending is clothing.

Detailed explanation-2: -Borrowers are hurt by deflation in particular because they have to pay back their debts with money worth more than the money they borrowed in the first place! Most policies that target inflation are aimed at maintaining small and predictable rates of inflation.

Detailed explanation-3: -Which of the following occurs during a recession? Output falls, employment falls, and unemployment rises.

Detailed explanation-4: -The most common example of a recession and depression is the global recession of the 2008 financial crisis and the Great Depression of the 1930s, respectively.