Which best describes how a recession develops as demand and production decrease? the recession accelerates. the recession spirals out of control the recession feeds on itself. the recession starts and stops.

The correct answer is C. The recession feeds on itself.

Recession occurs when business stops to expand, unemployment rate decreases, prices on housing declines, the GDP diminishes.

During recession, prices of unemployment increase while the wages decrease which leads to less income which is to be spend by consumers.

The option C is correct. The recession feeds on itself describes a recession develops as demand and production decrease.  

Further Explanation:

Recession is a phase in which the growth rate is declined, the unemployment rate is high, the production is less. If the country faces a recession period, then the country is not more survive to meet the basic needs of the citizens of the country.  

Justification for the correct and incorrect

A.

The recession accelerates: This option is incorrect.

If the recession accelerates, it means the recession continues for a long period. If the recession accelerates, the demand does not develop and produce is not decreased.  

B.

The recession spirals out of control: This option is incorrect.  

The recession spirals out of control means all factor is decreased. The demand is also decreased, this is not the correct option.  

C.

The recession feeds on itself: This option is correct.

The recession develops demand and reduces production itself. This is the correct option.  

D.

The recession starts and stops: This option is incorrect.

This is not best describes to develop demand and decrease production. This is not the correct option.  

Learn more:

1.Learn more about demand and supply

2.Learn more about demand and type of goods

3.Learn more about goods production  

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Recession

Keywords:

recession, develops demand, decrease production, accelerates, spirals out of control, feed, starts, and stops, long period, basic needs of the citizens of the country.  

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