Final answer:
When unemployment rates increase significantly, the economy is in a recession, which is part of the business cycle where employment rates are typically low. During recessions, the use of government assistance programs like TANF, SNAP, and Medicaid increases, while it decreases during an expansion.
Step-by-step explanation:
When unemployment increases to record levels, it indicates the economy is in a recession. In a recession, real Gross Domestic Product (GDP) decreases for an extended period, usually for at least six consecutive months. During this phase of the business cycle, unemployment rates typically rise because companies are making less revenue and may need to lay off workers to cut costs. Conversely, during an expansion, the economy is growing, and employment rates tend to increase as businesses need more workers to keep up with the growing demand.
In terms of government aid programs like Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and Medicaid, their usage generally increases during a recession because more people are in need of assistance due to job losses or reduced incomes. During an expansion, the demand for these programs might decrease as more individuals have jobs and can better support themselves and their families.