The economy goes into recession, increases the money supply, decreases taxes, and increases government spending.[b] option is the correct answer for the above statement.
When there is an economic downturn?
The term "economic recession" refers to a time of overall economic downturn that is frequently followed by a decline in the stock market, a rise in unemployment, and a decline in the housing market. Recessions are typically less severe than depressions. more than two straight quarters, often.
Unemployment is one of the effects of a recession and tends to rise, especially among low-skilled workers, as a result of businesses and even government organizations laying off employees to save costs.
Therefore, Recession-related output declines and firm closures are further effects.
Learn more about the Recession from the given link.
https://brainly.com/question/14735206
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