There were sharp increases in unemployment

Question

Quizplus · Accepted Answer

The statement mentions "sharp increases in unemployment" and identifies recessions that occurred in 1982/83 and 1990/91. During economic recessions, there is often a decrease in economic activity leading to an increase in unemployment due to businesses laying off workers or closing down. Therefore, option C is the best choice. Option A is incorrect, as an increase in government expenditure can lead to an increase in demand for goods and services, which can lead to employment growth. Option B is possible but not mentioned in the statement. Option D is incorrect, as the Great Moderation period is known for its low levels of unemployment. Option E is too broad and cannot be inferred from the statement.

There Were Sharp Increases in Unemployment