Question

Imagine that unemployment increases to record levels. The economy is in

Answer 1

Answer: Recession

Explanation:

Hi, a recession is when the economy declines significantly for at least six months. There's a drop in the following five economic indicators: real gross domestic product, income, employment, manufacturing, and retail sales.  

The National Bureau of Economic Research defines a recession as "a period of falling economic activity spread across the economy, lasting more than a few months.”

So, if the unemployment increases to record levels. The economy is in recession.

Answer 2

Answer:

Recession

Explanation:

A recession is the name given to an economic situation in which there is a decline on economic activity. Recessions have an enormous impact on all economic aspects, including GDP, income, levels of employment, industrial production, etc. There are many reasons for a recession to occur, such as a financial crisis, or an economic bubble. However, governments can take some actions in order to reduce the impact of these situations, such as increasing the money supply or decreasing taxation.