Question

During a recession, what is one way governments try to encourage growth? by increasing unemployment benefits by stopping government spending by requiring firms to maintain production by eliminating all tax breaks

Answer 1

During a recession, the way that governments try to encourage growth is : increasing unemployment benefits

During a recession, a number of unemployment will rapidly increased ( almost a third of citizen could be jobless). In order to handle this, government could increase unemployment benefit so the unemployed people have enough to scrapped by until the recession is over or started a new business.

Answer 2

One way the government try to encourage growth during recession is by increasing unemployment benefits

Any country's economy that experiences a decline for a minimum of six months is said to be in recession.

Further Explanation

Recession causes unemployment because when the growth of the economy is very slow, the revenues generated by companies during this period will be very less, which can also result in job loss.

Therefore, one of the ways the government intervenes to encourage growth during recession is by increasing unemployment benefits so that its effect will not be too much on the unemployed.

Any economy facing recession will experience a significant decrease in sales and revenues.

For example: the recessions that occurred in the United States from 2008 to 2009 affected major banks. Banks recorded huge loss and this forced banks to decrease the rate at which new loans are issued.

Also, many companies reduce employee’s salary and stop the recruitment of new workers; In fact, banks were so afraid to give loans to each other.

One of the major causes of recession is when there is a decline in the GDP growth, but some other causes also include

• Poor management
• Deregulation
• Loss of confidence in investments
• Credit crunch and many more

LEARN MORE:

• During a recession, what is one way governments try to encourage growth? brainly.com/question/1341373
• During a recession, what is one way governments try to encourage growth?  brainly.com/question/3930050

KEYWORDS:

• gdp
• recession
• unemployment
• benefits
• banks