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 points)

Answer 1

Some of the common causes of a recession include a decrease in consumer confidence, a decline in investments, high levels of debt, and external shocks such as natural disasters or global economic crises.

After a recession has ended, a country's output and prices may begin to recover as demand picks up and businesses start investing again. However, it may take some time for the economy to fully recover and for output and prices to return to pre-recession levels. Government intervention and stimulus measures can help to speed up the recovery process.