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When the economy enters a recessionary phase of the business cycle, unemployment tends to: A) decrease. B) increase. C) be unchanged

asked
User Richardd
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1 Answer

1 vote

Answer: Increase

Step-by-step explanation:

When the economy enters a recessionary phase of the business cycle, unemployment tends to increase. This is because during a recession, businesses tend to reduce their production levels, leading to a decrease in demand for labor. As a result, companies may have to lay off workers or reduce their hours to cut costs. This can lead to higher unemployment rates in the economy.

answered
User Marius Darila
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8.6k points
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