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When the business cycle or economic activity is declining the economy is said to be what

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6 votes

Answer:

Contraction

Step-by-step explanation:

Contraction is when the level of economic activities in a country goes down. There is decreased productivity in the country, as indicated by a decline in the GDP value. At contraction, the economy will experience a drop in real incomes, retail sales, and industrial production. The unemployment rate begins to rise steadily as companies stop hiring while other lay-off workers due to reduced demand.

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