What are the causes of a recession? What happens to a county's output and prices after a recession has ended? Write three sentences.

Answer 1

A recession is typically caused by factors such as a decline in consumer confidence, reduced spending, high unemployment rates, or disruptions in supply chains, often exacerbated by financial crises or external shocks. After a recession has ended, a country's output generally begins to recover as businesses restart operations and consumer spending increases, leading to a gradual rise in economic growth. However, prices may remain subdued initially due to lingering excess supply and cautious consumer behavior, potentially delaying significant inflation until demand fully rebounds.