Explanation:

During a recovery, the economy undergoes a process of economic adaptation and adjustment to new conditions, including the factors that triggered the recession in the first place and the new policies and rules rolled out by governments and central banks in response to the recession. The labor, capital goods, and other productive resources that were tied up in business that failed and went under during the recession are re-employed in new activities as unemployed workers find new jobs and failed firms are bought up or divided up by others. A recovery is the economy healing itself from the damage done, and it sets the stage for a new expansion.