3
lesson pretestMultiple Choice

Pretest

Question 3 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

During a recession, what is one way governments try to encourage growth?

Answer
A
by stopping government spending
B
by increasing unemployment benefits
C
by eliminating all tax breaks
D
by requiring firms to maintain production

Explanation

During a recession, governments may increase unemployment benefits to support people who have lost jobs. That puts more money into households, helping sustain consumer spending and encourage economic activity. Stopping government spending would tend to reduce demand, not stimulate growth.

AI-written and checked against the verified answer.

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