BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How would businesses most likely respond to a downturn in economic activity?
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Increase production, lower prices and employ more workers
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Increase production, increase prices and employ fewer workers
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Decrease production, decrease prices and employ fewer workers
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Decrease production, decrease prices and employ more workers
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Explanation:
Detailed explanation-1: -What Happens in a Recession? 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: -Recession impact on business This means your business might find it more difficult to generate its usual sales, and you’ll need to cut costs accordingly. Businesses are less likely to invest in new products, employees might be made redundant, and overheads are slashed to account for a reduction in profit.
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