During a recession, what is one way governments try to encourage growth?
A. by increasing unemployment benefits
B. by stopping government spending
C. by requiring firms to maintain production
D. by eliminating all tax breaks
Answer (1)
Governments can encourage growth during a recession by increasing unemployment benefits, which helps individuals maintain their purchasing power and stimulates demand in the economy. This strategy supports consumer spending and aids in economic recovery. Historical examples, such as the 2008 financial crisis interventions, illustrate the effectiveness of such measures in fostering growth. ;
