Question

Typically, the unemployment rate ________ during a recession and ________ during an expansion.

A. rises; does not change
B. falls; rises
C. rises; falls
D. rises; rises even more

Answer 1

The unemployment rate typically rises during a recession and falls during an expansion.

Step-by-step explanation:

The unemployment rate typically rises during a recession and falls during an expansion. This is because during a recession, businesses may reduce their workforce or even shut down, leading to higher unemployment. On the other hand, during an expansion, businesses tend to hire more workers as they grow, resulting in a lower unemployment rate.