Which of the following situations arises during a recession?
A)An increase in the stock market valuations
B)An increase in the rate of unemployment
C)An increase in business and consumer confidence
D)An increase in consumer spending
E)An increase in purchasing power

Question

Quizplus · Accepted Answer

During a recession, there is a decrease in economic activity, which often leads to an increase in unemployment rates.

Possible answer (if only one choice needs to be selected): B 
Possible answer (if multiple choices can be selected): B and C (if there were any uncertainty about an increase in business and consumer confidence, as it may or may not happen during a recession)

Which of the Following Situations Arises During a Recession