Which best describes the nature of cause and effect in the context of the business cycle?

When consumers spend less, businesses sell fewer goods and services and may need fewer workers, leading to layoffs. This is a cause-and-effect relationship associated with an economic downturn. Falling demand would not keep production at its peak, overproduction creates a surplus of goods rather than jobs, and recessions usually cause consumers to spend less, not more.

AI-written and checked against the verified answer.