Question

What are the causes of a recession? What happens to a county's output and prices after a recession has ended? Write 3-5 sentences.(4

Answer 1

There are several potential causes of a recession, including a decrease in consumer spending, a decline in business investment, disruptions in global trade, and changes in government policy. In the aftermath of a recession, a country's output may start to increase as businesses ramp up production to meet growing demand, leading to economic growth. As output increases, prices may also start to rise as businesses pass on higher production costs to consumers. Ultimately, the recovery period after a recession involves a gradual return to normal economic conditions.