Question

Write a one-paragraph response.

Discuss the correlation between recessions and the total spending, total income, and the total number of unemployed in the economy.

Answer 1

Total income, total number of people employed in the economy and spending by the consumer are all related. As the consumer spending increases the the demand in the economy increases and that will increase the income of the people in the economy, it will also increase the investment in the market.

At a higher investment business will expand and they will employ more people, it will decrease the unemployment and number of unemployed people in the market. Higher the consumer spending is the higher the economy will rise and income and employment will increase.