In a recession,typically
A)unemployment decreases.
B)the labour force participation rate increases.
C)the employment-to-population ratio decreases.
D)the employment-to-population ratio increases.
E)none of the above.

Question

Quizplus · Accepted Answer

In a recession, businesses typically lay off workers, causing the employment-to-population ratio to decrease. This means that a lower percentage of the population is employed, leading to higher unemployment rates. The labour force participation rate may also decrease as people become discouraged and stop looking for work, but it is not typically expected to increase during a recession.

In a Recession,typically