Recessions resulting from financial crises
a. Are more severe than recessions stemming from other causes but their recoveries are faster |
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b. Are less severe than recessions stemming from other causes but their recoveries are slower |
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c. Are more severe than recessions stemming from other causes but their recoveries are faster |
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d. Are more severe than recessions stemming from other causes and their recoveries are slower |
Option d is correct.Are more severe than recessions stemming
from other causes and their recoveries are slower
Recession due to financial crisis causes loss of public money,
banks become bankrupt, unemployment increases, the industrial
growth decreases due to lack of funds. Instead of spending people
try to save more money which decreases demand and this process
takes a very long time to recover. This type of recession affects
all.
Other type of recessions are not widespread and may come only
during periods of war .
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