Unemployment Increases During a Recession

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Question:

In a recession, generally:

employment increases.

unemployment increases.

wages increase and unemployment increases.

wages decrease and unemployment increases.

Answer:

In a recession, generally:

unemployment increases.

During a recession, economic activity slows down, leading to businesses reducing their workforce, which results in higher unemployment rates. Wages may also stagnate or decrease, but the key characteristic of a recession is the increase in unemployment.