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Which best describes how a recession develops as demand and production decrease?
The recession enters a recovery period.
The recession slows.
The recession accelerates.
The recession starts and stops.
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The recession accelerates.
As demand and production fall, firms cut output and jobs, reducing incomes and spending, which further lowers demand — a reinforcing cycle that deepens the downturn.
As demand and production fall, firms cut output and jobs, reducing incomes and spending, which further lowers demand — a reinforcing cycle that deepens the downturn.
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