A recession is a period of significant, widespread declines in:

A.

inflation and unemployment.

B.

real income and employment.

C.

real income and unemployment.

D.

exports and imports.

Letter B. real income and employment.

Explanation:

Economic cycles describe the fluctuations that occur in income and employment in the economic system. This cycle may be one of expansion, a lasting movement of real income and employment growth, or it may be of recession, where the economic economy presents a significant and widespread decline in real income and employment. For example, the 2008 crisis has caused recession in many countries, leading to a fall in real income and employment.