What typically rises during a recession?
A) the price level
B) unemployment
C) corporate profits
D) automobile sales

Question

Quizplus · Accepted Answer

During a recession, unemployment typically increases as businesses reduce their workforce in response to decreased consumer spending and economic activity.

Answer: A, C, and D are all incorrect. 
 The price level typically either stays the same or decreases during a recession due to decreased demand for goods and services. Corporate profits and automobile sales also tend to decrease during a recession due to decreased consumer spending and economic activity.

What Typically Rises During a Recession