Question

Which event most likely explains renewed demand in a recovery period

Answer 1

The answer is: B

(Economic policy renews consumer confidence and demand.)

Hope this helps! :)

Answer 2

The answer would be Need, and therefore demand increases as goods wear out
During the reovery period, our economy just managed to survive through a recession that make a lot of people unable to by goods/services from the market.
When entering the recovery period, there is only small number of producer left in the market due to bankruptcy and the increasing demand will make the goods to wear out.