16
QuizMultiple Choice

The Business Cycle — Quiz

Question 16 • Personal Finance and Economics

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

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

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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