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26 June, 22:50

Which of the following best explains what happens when unemployment

increases during a recession?

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Answers (2)
  1. 26 June, 23:00
    0
    The answer is "There's a depression."
  2. 26 June, 23:04
    0
    The correct response is the recession worsens into a depression.

    Explanation:

    High unemployment during a recession can spark a depression where the economy contracts significantly for a prolonged period. A common definition of a recession is when an economy experiences negative GDP growth for two quarters. There are no commonly agreed criteria to differentiate a depression or to define when the economic problems advance into a depression, but generally, a depression is understood as a longer period of time where there is a significant decline in income and employment opportunities.
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