1. why is there a decrease in production during a recession?

2. why is the dollar worth comparatively less during inflation?

1. Why is there a decrease in production during a recession?

During recession, everyone is intent on saving money.

There is a decrease in production because of the following instances:
1) decrease in number of workers. Company tend to save money by firing their workers. 
2) decrease in demand of their products. Most consumers prefer to save their money and buy only necessities. 
3) increase in prices of raw materials. Raw materials of their products tend to cost more during recession.

2. Why is the dollar worth comparatively less during inflation?

Inflation is the rate wherein the prices of goods and services are increasing while the purchasing power of the currency is decreasing. The dollar worth is comparatively less during inflation because its time value has decreased.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.