Which of the Following Happens During Recessions

question 201

Multiple Choice

Which of the following happens during recessions?

• A) Firms produce less but invest more.
• B) Firms have to increase production because of falling prices.
• C) Incomes increase because workers have to work overtime.
• D) Unemployment rates increase.

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Definitions:

Implied Condition

A legal term referring to a term or condition not expressly stated in a contract but assumed to be included by necessity or by the nature of the agreement.

Materially Breach

A significant failure to perform one's duties under a contract that results in harm to the other party and provides grounds for termination of the agreement.

Total Breach

A significant failure to fulfill a core obligation of a contract, allowing the other party to terminate the agreement and seek damages.

Estoppel

A legal principle preventing someone from arguing something contrary to a claim previously made or acted upon in good faith.