Mention the two major causes of economic recession ? class 10 answer this question
Hi Chahat!
Two major causes of economic recession, according to your class 10th textbooks:
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Fall in Demand – When people stop buying goods and services due to less income or confidence in the economy, businesses earn less, leading to job cuts and further slowdown.
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Decline in Investment – When companies and industries reduce their investments due to uncertainty or losses, production and employment go down, which negatively impacts the economy.
These factors create a cycle of reduced spending and production, leading to a recession.
For more clarity, please read your textbooks.
All the best!
The two major causes of economic recession are:
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Decline in consumer demand – when people spend less, production slows down.
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High inflation or financial crises – which reduce purchasing power and business investment.
