Final answer:
The economy might be in a recession due to factors like poor government investment, political instability, and social inequality. To alleviate the recession, government action could include economic reforms, investment in human and physical capital, and policies to attract investment.
Step-by-step explanation:
There are several reasons why an economy might be in a recession. These include poor government investment, political instability, lack of access to international markets, corruption, social inequality, and a limited manufacturing sector. In addition, the transition from agriculture to more urbanized service sectors and the reliance on foreign aid and investments that are insufficient for substantial capital accumulation can also contribute to economic downturns.
Appropriate government action to alleviate the recession could involve implementing economic reforms, investing in human and physical capital, encouraging small businesses through microcredit schemes, combating corruption to establish a stable government, and creating policies that attract both domestic and foreign investments while managing inflation.