Question

This shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times or magnitudes.

• A. K shaped
• B. Z shaped
• C. Swoosh shaped
• D. L shaped

Answer 1

The correct option is A K shaped

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> A K-shaped recovery is one in which the performance of different parts of the economy diverges like the arms of the letter "K”. Economic performance of different sectors, industries, and groups within an economy always differ to some extent, but in a K-shaped recovery some parts of the economy may see strong growth while others continue to decline.

Z-shaped recovery is the most-optimistic scenario in which the economy quickly rises like a phoenix after a crash.

An L-shaped recovery is a type of recovery characterized by a slow rate of recovery, with persistent unemployment and stagnant economic growth.

The Swoosh shape signifies that there will be a sharp plunge, a longish stay below the trend line of growth and a gradual climb up.