After a prolonged recession, an economy begins to recover as firms start hiring more workers due to lower input costs. Which of the following best describes the economic adjustment process occurring in this scenario?

In this scenario, the economic adjustment process is known as long-run economic adjustment. After a recession, businesses often face lower costs for materials and labor, which makes it easier for them to hire more workers. As firms start to employ more people, consumer spending typically increases because more people have jobs and income. This increase in spending can lead to higher demand for goods and services, which encourages further production and hiring. For example, if a car manufacturer hires more workers, they can produce more cars, leading to more sales and even more job creation in the community.