Typically during a recession

Question

Quizplus · Accepted Answer

During a recession, incomes generally fall as businesses may reduce employee hours or lay off workers. This leads to an increase in unemployment as more people are looking for work. Therefore, during a recession, incomes fall and unemployment rises. Option A is incorrect because if incomes are falling, it is highly unlikely that unemployment would fall. Option B is incorrect because it suggests that both incomes and unemployment rise, which is not typically the case during a recession. Option D is also incorrect because it suggests that incomes increase, which is not typically the case during a recession.

Typically During a Recession