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During arecession there is increased consumer demand increased competition less discretionary income very little unemployment

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During arecession there is
increased consumer demand
increased competition
less discretionary income
very little unemployment

During arecession there is increased consumer demand increased competition less discretionary income very little unemployment

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TobiasMaster · Tutor for 5 years

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<p> less discretionary income</p>

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<p> To analyze the effects of a recession on economic factors, it's important to understand what a recession is and its typical characteristics. A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. The impacts of a recession on consumer demand, competition, discretionary income, and unemployment are as follows:<br /><br />1. **Increased Consumer Demand**: Generally, during a recession, consumer demand decreases rather than increases. This is because consumers tend to reduce spending due to uncertainties about the future, job security, and a decrease in income.<br /><br />2. **Increased Competition**: Recessions often lead to increased competition among businesses. As the overall demand for goods and services decreases, businesses compete more aggressively for the reduced number of sales available.<br /><br />3. **Less Discretionary Income**: This is a typical consequence of a recession. Discretionary income is the amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food and shelter) are taken care of. During a recession, individuals often face reduced income or job loss, leading to less discretionary income.<br /><br />4. **Very Little Unemployment**: This statement is incorrect in the context of a recession. Typically, unemployment increases during a recession. Businesses, facing lower demand and reduced revenues, may lay off workers to cut costs, leading to higher unemployment rates.<br /><br />Therefore, the correct statements about a recession are increased competition and less discretionary income, not increased consumer demand or very little unemployment.</p>
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