Which of the following statements is not a cause of economic recession?
Practice Questions
Q1
Which of the following statements is not a cause of economic recession?
High unemployment rates.
Increased consumer spending.
Decline in manufacturing output.
Decreased investment.
Questions & Step-by-Step Solutions
Which of the following statements is not a cause of economic recession?
Step 1: Understand what an economic recession is. It is a period when the economy shrinks, leading to less spending and investment.
Step 2: Identify common causes of economic recession. These can include high unemployment, decreased consumer confidence, and reduced business investment.
Step 3: Look at the statements provided. Determine which one describes a situation that would not lead to a recession.
Step 4: Recognize that increased consumer spending is generally good for the economy. It usually helps businesses grow and can prevent a recession.
Step 5: Conclude that increased consumer spending is not a cause of economic recession, making it the correct answer.
