What does the statement 'recessions are a normal part of the business cycle' support? How does a government-funded construction project stimulate spending? Which of the following t... What does the statement 'recessions are a normal part of the business cycle' support? How does a government-funded construction project stimulate spending? Which of the following typically rises during a recession?
Understand the Problem
The question is asking about the implications of recessions in the business cycle and how government-funded construction projects can stimulate spending, as well as what typically rises during a recession.
Answer
6. Recessions are not permanent. 7. By providing regular income. 8. Unemployment rises.
- Recessions are not permanent. 7. By providing construction workers with regular income. 8. Unemployment typically rises during a recession.
Answer for screen readers
- Recessions are not permanent. 7. By providing construction workers with regular income. 8. Unemployment typically rises during a recession.
More Information
Recessions are temporary contractions in the economy. Government projects stimulate spending by increasing regular income, fueling demand. Unemployment typically rises as businesses cut costs.
Tips
A common mistake is assuming that all economic indicators rise during a recession; however, it's typically unemployment and sometimes inflation due to decreased spending.
Sources
- The Impact of Recessions on Businesses - Investopedia - investopedia.com
- Fiscal Policy and Recessions - The Role of Public Infrastructure - fraserinstitute.org
- Economic Growth and the Business Cycle: Characteristics, Causes ... - everycrsreport.com
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