Falling economic indicators typically signal ________ in the economy.

Falling economic indicators typically signal ________ in the economy.

1: depression

2: expansion

3: inflation

4: recession

Answer. 4: recession

When there is a decline in economic statistics like the reduction of GDP, a spike in the rate of unemployment, a downward trend in consumer spending, and of investments in businesses, then it implies that the economy is heading recession. A recession is defined as a phase which has features of a sharp decrease in economic conditions that are marked by an extended period of decline in economic activities across many sectors of the economy Decreasing of the economic most indicators are signaling in advance that the economy is moving into a recession. In the period of recession, business may encounter the decline in sales, families may experience the unemployment and proleterization, and growth of the economy will results in the freeze or reduction in size. Conducting surveillance of economic indicators is of great importance so that government authorities and economists can point out the areas of unemployment, reduce the number of those who are affected and take measures to reduce the adverse effect of the depression.