PrepTest 19, Section 2, Question 3
In a recession, a decrease in consumer spending causes many businesses to lay off workers or even to close. Workers who lose their jobs in a recession usually cannot find new jobs. The result is an increase in the number of people who are jobless. Recovery from a recession is defined by an increase in consumer spending and an expansion of business activity that creates a need for additional workers. But businesspeople generally have little confidence in the economy after a recession and therefore delay hiring additional workers as long as possible.
In a recession, a decrease in consumer spending causes many businesses to lay off workers or even to close. Workers who lose their jobs in a recession usually cannot find new jobs. The result is an increase in the number of people who are jobless. Recovery from a recession is defined by an increase in consumer spending and an expansion of business activity that creates a need for additional workers. But businesspeople generally have little confidence in the economy after a recession and therefore delay hiring additional workers as long as possible.
In a recession, a decrease in consumer spending causes many businesses to lay off workers or even to close. Workers who lose their jobs in a recession usually cannot find new jobs. The result is an increase in the number of people who are jobless. Recovery from a recession is defined by an increase in consumer spending and an expansion of business activity that creates a need for additional workers. But businesspeople generally have little confidence in the economy after a recession and therefore delay hiring additional workers as long as possible.
In a recession, a decrease in consumer spending causes many businesses to lay off workers or even to close. Workers who lose their jobs in a recession usually cannot find new jobs. The result is an increase in the number of people who are jobless. Recovery from a recession is defined by an increase in consumer spending and an expansion of business activity that creates a need for additional workers. But businesspeople generally have little confidence in the economy after a recession and therefore delay hiring additional workers as long as possible.
The statements above, if true, provide most support for which one of the following conclusions?
Recessions are usually caused by a decrease in businesspeople's confidence in the economy.
Governmental intervention is required in order for an economy to recover from a recession.
Employees of businesses that close during a recession make up the majority of the workers who lose their jobs during that recession.
Sometimes recovery from a recession does not promptly result in a decrease in the number of people who are jobless.
Workers who lose their jobs during a recession are likely to get equally good jobs when the economy recovers.
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