ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Unemployment “rises like a rocket and falls like a feather.”1 When a recession starts and companies look for ways to manage slowing demand for the goods and services that they sell, many may resort to laying off workers to cut costs. Those laid-off workers spend less, which weakens demand even further.

Detailed explanation-2: -The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.

Detailed explanation-3: -Here is a list of our partners and here’s how we make money. Though the economy occasionally sputtered in 2022, it has certainly been resilient-and now in the early months of 2023, the U.S. is still not currently in a recession, according to a traditional definition.

Detailed explanation-4: -Historically, unemployment has always increased whenever the aggregate economy experienced a recession. But the rate typically peaks about 15 months after the beginning of the recession, or 4 months after the end of the recession, and then starts to drop gradually over time as the economy recovers (see figure 1).