Since the economy shrunk, business owners didn't have enough money to pay their workers, and since they didn't sell much, they didn't need workers. Since many people didn't have a job because of the layoffs, they didn't have money to go buy things. It became a cycle.
The answer is C. Monsoon is a seasonal prevailing wind in the region of Pacific ocean. Winds blow from the southwest between May and September or from the northeast between October and April.