3
QuizMultiple Choice

Roaring Economy to Great Depression

Question 3 • EAP-Virginia and US History B CR

Which of the following best explains what happens when consumers think the economy is struggling?

Answer
A
People spend more, businesses produce less, and unemployment rises.
B
People spend more, businesses produce a lot, and unemployment is low.
C
People spend less, businesses produce too much, and unemployment is low.
D
People spend less, businesses produce less, and unemployment rises.

Explanation

When consumers believe the economy is struggling, they tend to spend less and save more. Lower spending means businesses sell fewer goods and services, so they reduce production. Businesses may then cut jobs, causing unemployment to rise. This matches choice D: people spend less, businesses produce less, and unemployment rises.

AI-written and checked against the verified answer.

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