During a severe recession, we would expect output to fall the most in
A) the health care industry.
B) the clothing industry.
C) agriculture.
D) the construction industry.

Question

Quizplus · Accepted Answer

During a severe recession, the demand for housing decreases which results in a significant decrease in the construction industry. This is because people are less likely to be purchasing new homes, and builders also have less incentive to build new houses or apartment buildings. Therefore, the construction industry is likely to experience the biggest fall in output during a severe recession compared to other industries.

During a Severe Recession, We Would Expect Output to Fall