Accounting Multiple Choice Question – 2 July 2025

The recession phase of the business cycle will normally be accompanied by all the following except?

Select ONE answer:

1. A rise in the rate of inflation
2. A fall in the level of national output
3. An improvement in the trade balance
4. A rise in the level of unemployment

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Recession and declining demand go together. Inflation and declining demand do not. The trade balance is likely to improve due to a decrease in demand for imports.
2. Not correct
3. Not correct
4. Not correct

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