Which of the following would not likely be a consequence of a recession?
A) Aggregate output declines.
B) Producers will hire more employees.
C) Unemployment will increase.
D) Less labour will be needed to produce products.
E) GDP will decrease.

Question

Quizplus · Accepted Answer

During a recession, businesses typically experience lower demand for their products or services, causing a decline in their revenue. As a result, they are more likely to lay off employees or at least freeze hiring, rather than hire more employees. Therefore, the statement "producers will hire more employees" would not be a likely consequence of a recession.

Which of the Following Would Not Likely Be a Consequence