Question

Recession in the market implies _____________.

• A. a slump in trade and industry due to fall in demand
• B. an increase in trade and industry due to rise in demand
• C. no change in trade and industry due to stability in demand
• D. None of these

Answer 1

The correct option is A a slump in trade and industry due to fall in demand

Recession in the market implies a slump in trade and industry due to fall in demand. During recession period, the economy faces a low-equilibrium trap. It means that because of less demand and less consumption expenditure, the output and employment level of the economy also fall.