What is characterized by high unemployment, falling wages, and low inflation?

The situation characterized by high unemployment, falling wages, and low inflation aligns best with the concept of a recession. A recession occurs when there is a significant decline in economic activity across the economy for a sustained period. During a recession, businesses may cut back on production due to reduced consumer demand, leading to layoffs and higher unemployment rates. As more individuals are out of work, they have less income to spend, which can cause wages to stagnate or decrease.

Furthermore, low inflation, or even deflation, can occur as a result of decreased consumer spending and overall economic activity. When people are uncertain about the economy, they tend to spend less, further driving down demand and prices.

While contraction is a related term that refers to a slowdown in the economy, it does not encapsulate the broad and sustained decline indicated by the term recession. Expansions represent periods of economic growth, and depressions describe more severe and prolonged downturns. Therefore, the characteristics in the question specifically reflect a recession rather than merely a contraction or another economic condition.