Depression is a drastic decline in a national or international economy. It's characteristic is_____________?
Correct answer: D. All of these
- A. Decreasing business activity
- B. Falling prices
- C. Unemployment
- D. All of these
Explanation
A depression is a severe and prolonged contraction in economic activity, typically involving falling prices, declining business activity, and high unemployment. These are complementary characteristics, so all the listed effects apply.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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