ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -During recessions, young households delay entry into the housing market, and remain with their parents. Other households choose to share housing costs by combining households, leading to an increase in overcrowded dwellings.

Detailed explanation-2: -Recessions reduce opportunities: failed businesses, fewer jobs, and lower wages. Recessions normally don’t happen every year, but they’re not unusual. The National Bureau of Economic Research has tracked recessions in the U.S. all the way back to 1857.

Detailed explanation-3: -Eventually, most recessions plunder the housing market, which involves real estate agents, mortgage lenders and everything connected to construction, from workers to suppliers.

Detailed explanation-4: -Measurable levels of spending and investment are likely to drop, and a natural downward pressure on prices may occur as aggregate demand slumps. GDP declines, and unemployment rates rise because companies lay off workers to reduce costs. At the microeconomic level, firms experience declining margins during a recession.