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Answer :
Final answer:
c. Decrease, decrease
During a recession, inflation typically decreases and wages also decrease due to lower demand for goods and services.
Explanation:
During the recession phase of the business cycle, typically inflation decreases and wages decrease. Historical data from various economic downturns, such as the Great Depression and the Great Recession, show that recessions are often characterized by lower inflation rates or even deflation. In a recession, high levels of unemployment are prevalent because of reduced demand for goods and services, which in turn leads to lower overall consumer spending. This lack of demand puts downward pressure on both prices and wages.
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