Respuesta :
Answer:
Although there are additional reasons, recessions might occur due to a drop in spending along with high interest rates. In economic recovery, incomes rise and unemployment falls.
hope this helps!
Some reasons that can cause a recession are:
- Drop in spending
- High interest rates
What is a Recession?
This refers to the economic situation where a country faces reduced trade activity as a result of a drop in spending.
Hence, we can see that some of the main causes of a drop in spending could be because of low wages, and the high cost of items and this leads to economic hardships.
Read more about recessions here:
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