Question

What is one major indicator that a country is in a recession?

A a short period of economic growth

B A rise in unemployment rates

C When the economy’s GDP decreases for at least 2 fiscal quarters in a row

D Typical levels of inflation

Answer 1

B. A rise in unemployment rates is one major indicator that a country is in a recession. Unemployment rates tend to increase during a recession as companies cut jobs, reduce production, and lower investment. As a result, consumers may hold back on spending, leading to a further drop in demand, and ultimately a sluggish economy.