The most painful consequence of a recession is:
A) rising unemployment.
B) increasing inflation.
C) increasing aggregate output.
D) higher interest rates.

Question

Quizplus · Accepted Answer

Rising unemployment is the most painful consequence of a recession as it leads to loss of income and financial insecurity for individuals and families. It also has negative effects on the broader economy, as decreased consumer spending can lead to further economic contraction. While increasing inflation and higher interest rates can also be negative consequences of a recession, they are typically not as detrimental to individuals as losing their jobs. Increasing aggregate output, on the other hand, would be a positive consequence and not a negative consequence of a recession.

The Most Painful Consequence of a Recession Is