Question

During a recession, unemployment is high. During a period of economic expansion, unemployment is relatively low.

True
O
False

Answer 1

True.

Step-by-step explanation:

Recession is when there is a huge decline in the growth of a country's economy. Recession brings about changes in the unemployment rate. It causes an increase in unemployment due to the decline in Gross domestic product. Gross domestic product is the overall number of goods and services produced in a country. When the amount of goods produced reduces, it causes a recession. A lot of organisations make less profit as there is less demand for goods and services. A typical illustration was the Great Depression in the United States.

However, when a country is experiencing an economic expansion, the economy begins to boost thereby reducing the unemployment rate. There will be a lot of job opportunities and there will also be an increase in GDP.