ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It might be easier to find work because businesses would be more likely to hire new employees.
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It might be easier to find work because businesses would have fewer workers to choose from.
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It might be more difficult to find work because businesses would be less likely to hire new employees.
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It would have no effect on finding work.
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Detailed explanation-1: -The downward slope of the business cycle is called economic contraction. A contraction is a period when economic output declines. During this phase, the economy is producing fewer goods and services than it did before.
Detailed explanation-2: -When an economy enters into contraction, real gross domestic product (GDP) growth slows and unemployment rises. A contraction often leads to economic hardship for many people.
Detailed explanation-3: -The downswing of the business cycle towards a trough is called an economic contraction. It is associated with: decrease in production/output • increase in unemployment • decrease in wages • decrease in consumer spending.
Detailed explanation-4: -When the economy has contracted enough, the Fed steps in to spur the economy by lowering interest rates and adding money to the system. This brings on the bottom, or trough, of the recession.