During an economic recession, when real GDP falls, unemployment usually .Group of answer choicesfallsrisesstays the samefalls or rises
Question
During an economic recession, when real GDP falls, unemployment usually .Group of answer choicesfallsrisesstays the samefalls or rises
Solution
During an economic recession, when real GDP falls, unemployment usually rises. This is because when GDP falls, it means that the economy is not producing as much goods and services, which in turn means that businesses are not making as much money. As a result, they may need to cut costs, and one of the ways they do this is by laying off workers, which increases unemployment.
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