chad, a sales executive at ochre inc., is laid off after ochre faces severe financial losses in the second and third quarters of 2014. as a result, chad is struggling to make ends meet with his limited savings. his debt has considerably increased, and he finding it difficult to pay his household bills. this situation is characteristic of

A). A Recession.

Explanation:

Recession(in general terms) is demonstrated as the period of reduced or declined economic activity.

As per the given description, the situation characterizes 'a recession' as there is a significant decline in expenditures or spending of Chad due to consequent financial losses in two consecutive(second and third) quarters and increased debt. Owing to the financial crisis, there is a considerable decline in economic activity and reduced consumer faith('difficulty in paying the household bills' reflect the slump). Therefore, option A is the correct answer.

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