ENTREPRENEURSHIP

Detailed explanation-1: -Overall during economic recessions consumers tend to dine out at cheaper places, purchase less durable goods and go on less vacations.

Detailed explanation-2: -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-3: -Inflation is characterized by a decline in the value of money and occurs whenever an economy experiences periods of instability. This results in higher pricing, increased unemployment rates, and overall anxiety among consumers and companies struggling to maintain their financial stability.

Detailed explanation-4: -Political instability is likely to shorten policymakers’ horizons leading to sub-optimal short term macroeconomic policies. It may also lead to a more frequent switch of policies, creating volatility and thus, negatively affecting macroeconomic performance.