5
lesson pretestMultiple Choice

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Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

When production is very high but demand is very low, it can lead to

Answer
A
a recession.
B
prosperity.
C
the peak.
D
a recovery.

Explanation

When production is very high but demand is very low, businesses may be left with unsold goods. They may cut production and reduce workers’ hours or jobs, which can slow the economy and lead to a recession. A recovery and prosperity describe stronger economic conditions, while a peak is the high point of an expansion.

AI-written and checked against the verified answer.

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