Question

Which of the following happens when unemployed increases during a recession

Answer 1

Answer:

I can see that there are no choices, so I'll answer the question according to my understanding.

If unemployment increases during a recession, companies will continue losing revenues and cash. This can lead to a halt of economic growth and may eventually lead to many companies going bankrupt.

Explanation:

"Recession" occurs when the spending of the society declines. This means that the economic activity is also declining. When this happens, companies start laying off workers. Many workers will then lose job. Company spending is also lowered, thereby affecting the economy of the country.

Once unemployment rate increases, people will spend less because they have no money to spend on goods and services. The growth of economy will then stop and companies will go bankrupt.

So, this explains the answer.