CIMA Fundamentals of Business Economics (BA1) Practice Exam

Depression is the deepest phase of a downturn, marked by very weak economic activity and a contracting or extremely slow-growing economy. The growth rate being at its lowest point captures this collapse in output and demand, which accompanies high unemployment and underused capacity. The other statements describe conditions typical of booms or recovery (rapid growth, rising prices) or improvements in the job market (increased employment), which don’t occur in a depression.