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Correct
Solution:
(d) Increase in the price of inputs due to increased demand for inputs is not a characteristic of economic recession.
Economic recession is generally characterized by a fall in the levels of investment, employment, and economic activity, resulting in decreased demand for goods and services.
This, in turn, leads to a decline in incomes of wage and interest earners, which further reduces demand.
Investor confidence is also adversely affected during a recession, and new investments may not be forthcoming.
As a result of decreased demand, businesses may cut back on production and investment, which can exacerbate the decline in economic activity.
However, an increase in the price of inputs due to increased demand for inputs is not a typical characteristic of recession. Instead, during a recession, businesses may experience a decline in input prices as suppliers seek to reduce excess inventory or sell off excess capacity.
Correct option is (d)