Suppose Mike and Renee Are the Only Two People in a Very

Multiple Choice

Suppose Mike and Renee are the only two people in a very simple economy and that they produce and exchange two goods,soda and pretzels.Which of the following might cause a recession in this simple economy?

A) Mike gets the idea that Renee wants more soda,which Mike produces.
B) Renee gets the idea that Mike wants more pretzels,which she produces.
C) Mike gets the idea that Renee wants less soda,which he produces.
D) Renee gets the idea that Mike wants less soda,which he produces.
E) The production of pretzels being equal to the production of soda.