The most painful effect of a recession is:
A) inflation.
B) unemployment.
C) money neutrality.
D) liquidity trap.

Question

Quizplus · Accepted Answer

Unemployment is the most painful effect of a recession as it directly affects individuals and families by causing a loss of income and financial instability. High levels of unemployment can also lead to increased poverty, social unrest, and reduced economic growth. Inflation, money neutrality, and liquidity trap may also be negative effects of a recession, but unemployment has the most significant impact on individuals and society as a whole.

The Most Painful Effect of a Recession Is