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CFA Level 1
Economics

Strategies for Firms During a Recession

Medium Macroeconomics Business Cycles

During a recession in an economy, consumer spending and investment typically decline, leading to a reduction in the overall demand for goods and services. As firms adjust to this environment, they may implement various strategies. Consider the following three potential responses of firms to a recession:

Which of the following strategies is most likely to help firms maintain their market position during a recession?

Hint

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