raymond304118
contestada

Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions.
Online Content: Site 1

Describe what happens when the economy expands. What are the results when an economy retracts? How is a recession defined? (Site 1)

Respuesta :

Answer:

When an economy expands, it leads to a decrease in unemployment, an increase in inflation, and a rise of the real GDP. When the economy contracts, it leads to an increase in unemployment, a decrease in inflation, and a fall in the real GDP. A recession is defined as 2 consecutive quarters that show a decline in growth in the real GDP.

Explanation:
  • The expansion in the economy leads to an enhancement in GDP and inflation with a downfall in unemployment.
  • In contrast, the retraction of the economy caused a reduction in Inflation and GDP with an up-gradation in unemployment.

What is meant by the recession?

When there is a downfall in the economic activity, then it is considered a scenario of recession.

  • The expansion or contraction of the economy affects the three factors namely, unemployment, inflation, and GDP.
  • The expansion represents an upward trend in the business whereas a downward trend is represented by the contraction of the economy.

Therefore, the rise in GDP and inflation results in economic expansion but the unemployment falls, and the opposite is seen in the contraction of the economy.

Learn more about the recession in the related link:

https://brainly.com/question/18075358

#SPJ2

Otras preguntas