Question

During a recession, what is one way governments try to encourage growth

Answer 1

Answer:

By requiring firms to maintain production is the right answer.

Explanation:

By requiring firms to maintain production is the correct answer because during the recession period the purchasing power of the people decreases. Which causes a fall in the demand for goods and services and leads to unemployment.

However, in order to overcome the recession, firms should maintain production. As the requisite production will increase it will lead to an increase in employment. The increase in employment will leave people with an increase in their purchasing power. Which during the course of time will lead to an increase in demand for goods and services.