Question

Which of these events would most likely cause a recession?

1. the price of gasoline rises by ten percent
2. Political lenders pass large spending cuts
3. many people find new jobs at the same time
4. the value of total net exports rises unexpectedly

Answer 1

[AI-generated answer — Bot GPT 3.5]

Option 2: Political lenders pass large spending cuts would most likely cause a recession. By implementing significant spending cuts, the government reduces its expenditure, which can result in decreased public demand, lower economic growth, and potential job losses. This contraction in the economy can lead to a recession.