Answer:
D. Businesses will suffer from decreased sales and profits, eventually leading to closure.
Explanation:
An economic recession is defined as a significant decline in economic activity during several months in a row, and whose impacts can be seen in economic indicators like unemployment rate or gross domestic product.
During an economic recession, economic activity actually falls, meaning that the amount of either consumption, investment, exports, imports, or government spending decreases, leading to job losses, income reduction, loss of confidence in the economy, closure of firms, and falls in the tax revenue that the government obtains from economic agents.
The 1930’s is the time where Great Depression took place. In
that time, stock market crashed, unemployment went to the top, banks raced to liquidate
loans to cough up cash to sustain bank runs, and many banks closed. It resulted
to economic hardship to people in rural and city areas, most especially among
agricultural and factory workers. Huge numbers of people lost their jobs, while
those who still have jobs face very uncertain future. The Communist Party USA have
attractive platforms like more power for workers and for the common man. Therefore,
membership of the Communist Party USA swelled to about 55,000 in the 1930s.
