Introduction: Drag each tile into the box where it best belongs. Causes of Recession. Cause of Recovery. loss of jobs for workers falling demand for products increased hiring by employers rising demand for products

Please refer to Explanation

Explanation:

First an explanation of the terms.

Recession - A Recession refers to successive Quarters seeing a reduction in economic activity or negative Economic growth. On the business cycle, it is the area between the Peak and the Trough.

Recovery - This is the period in the business cycle where the Economy is rising and Economic growth is starting to be positive. It shows Increased business activity and is the area between the Trough and the Peak after the cycle leaves the Trough.

Classification.

Loss of jobs for workers - CAUSES OF RECESSION.

When workers lose their jobs, that means they will have less money to buy goods and services meaning that demand will fall. Demand falling means that companies have to produce less which leads to a reduction in Economic activity.

Falling demand for products - CAUSES OF RECESSION

As just mentioned, when there is a falling Demand for products, suppliers will respond by producing less goods. When this happens, there will be a reduction in Economic activities which is a Recession if the trend continues for a period of time.

Increased hiring by employers - CAUSE OF RECOVERY.

As more employers hire more people it signifies 2 things. One is that the company is now producing more which leads to more economic activity. Two is that with more people employed, more people have money and as such can buy more goods and services which means increased demand. This will help the Economy recover.

Rising demand for products - CAUSE OF RECOVERY.

As the demand for products rises, suppliers will respond by ramping up production. To do this they will need to employ more people and in so doing empower more people with money to buy goods and services which will increase Economic Activity which will help the economy recover.

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