12
QuizMultiple Choice

Unit Test — Unit test

Question 12 • 2351 OC Economics 25/26

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

Answer
b
by increasing unemployment benefits
b
by stopping government spending
b
by requiring firms to maintain production
b
by eliminating all tax breaks

Explanation

During a recession, governments may increase unemployment benefits to help households keep spending even when people lose their jobs. That spending supports demand for goods and services, which can encourage businesses to produce more and hire workers. Stopping government spending would generally reduce demand instead.

AI-written and checked against the verified answer.

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