Which of the following is a CORRECT sequence of events during a recession?

Question

Quizplus · Accepted Answer

During a recession, unemployment typically rises as businesses reduce their workforce. As unemployment rises, incomes of individuals also fall since there are fewer job opportunities available. With lower incomes, tax revenue collected by the government also falls. At the same time, the government may need to increase spending on unemployment benefits to support those out of work. This leads to an increase in the budget deficit as the government spends more than it is receiving in tax revenue. Therefore, the correct sequence of events during a recession is option B, which shows that all these factors move in the same direction.

Which of the Following Is a CORRECT Sequence of Events