Recession

In a recession, uncertainty about employment can deter spending. Which of the following is a synonym for “deter?”

• Discourage

• Enable

• Facilitate

• Permit

If a company lays off half of its employees during a recession, what can you reasonably conclude?

• The employees were bad at their job

• Another company wanted to higher the employees

• The company couldn't afford to pay the employees

• The employees were overqualified for their jobs

Based on the graph, in which of these years would you have had the toughest time finding work?

• 2001

• 2004

• 2007

• 2010

Which of these people is most likely to be a consumer, but not a producer?

• Preschooler

• High schooler

• College student

• Teacher

In most states, laid-off workers are eligible for 26 weeks of unemployment insurance. During recessions, that period is often extended to influence the behavior of:

• Consumers

• Manufacturers

• The stock market

• Retailers

The statement "recessions are a normal part of the business cycle" supports which of the following arguments?

• Recessions are especially hard on regular citizens

• Recessions are triggered by a drop in spending

• Recessions are not permanent

• Recessions are less severe than depressions

How does a government-funded construction project stimulate spending?

• By requiring construction workers to buy equipment

• By providing construction workers with regular income

• By selling leftover materials to construction workers

• By creating homes for construction workers to rent

Which of the following typically rises during a recession?

• Unemployment

• Average income

• Production

• Stock prices

How does the government typically handle taxes and interest rates during a recession?

• It raises taxes and lowers interest rates

• It lowers taxes and raises interest rates

• It lowers both taxes and interest rates

• It raises both taxes and interest rates

If recessions spread like a sickness, unemployment insurance is most like:

• A sick day

• A thermometer

• A cough

• Medicine