12
QuizMultiple Choice

The Business Cycle — Quiz

Question 12 • Personal Finance and Economics

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

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

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.

Previous
Next