Which of the following statements are true about recession?

a. After a recession, the rate of change in government spending tends to increase, which leads to an increase in the real GDP.
b. Before a recession, the rate of change in government spending tends to decrease, which leads to an increase in the real GDP.
c. During a recession, the rate of change in government spending tends to increase, which leads to an increase in the real GDP.
d. During a recession, the rate of change in government spending tends to decrease, which leads to a decrease in the real GDP.

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anthougo anthougo · Answer 1 · 2022-03-22T12:07:02+01:00

The TRUE statements about recession are as follows:

a. After a recession, the rate of change in government spending tends to increase, which leads to an increase in the real GDP.

c. During a recession, the rate of change in government spending tends to increase, which leads to an increase in the real GDP.

Recessions are significant declines in economic activities. They are felt greatly in real GDP, income, and employment.

Recessions are characterized by many business and bank failures, slow or negative growth in productive activities, and elevated unemployment.

Thus, the true statements about recessions are Options A and C.

Learn more about recessions at https://brainly.com/question/532515