Question

Which of these situations is the result of a recession? a.Increase in money held in savings b.Growth of household income c.Long-term job prosperity d.Fewer jobs lost e.Increased unemployment

Answer 1

Answer:

e. Increased unemployment

Explanation:

Recession is an economy condition in which there is a general decline in economic activities due to loss of confidence in a business which affect demand. It is a downward turn of an economy and has lot of implications and oportunities. Some investors take recession as an oportunity to increase the yield when they invest at the right institution. An example is the government bonbds.

One of the side effect of recession on the economy is an increase in the are of unemployment. Due to the economic contraction, a lot of people lose their jobs. This in turn cause an increase in unemployment.