Question

During a recession, one will often observe:

a) Rising consumer confidence
b) Decreased unemployment
c) Falling stock market prices
d) Increased government spending

Answer 1

During a recession, falling stock market prices and increased government spending are often observed.

Step-by-step explanation:

During a recession, one will often observe:

• Falling stock market prices
• Increased government spending

During a recession, the stock market tends to decline, leading to falling stock market prices. Additionally, the government often increases spending during a recession in order to stimulate the economy and boost aggregate demand.