The actual rate of unemployment will generally
A) increase as an economy enters a recession.
B) decrease as an economy enters a recession.
C) fall below the natural rate of unemployment during a recession.
D) do both a and c.

Question

Quizplus · Accepted Answer

Unemployment tends to increase during a recession as businesses cut back on hiring and may lay off workers. This results in more individuals actively seeking employment but unable to find it, causing an increase in the unemployment rate.

The Actual Rate of Unemployment Will Generally