Reduced spending causes unemployment from staff reduction True or False points (8 01:17:11 True False

Question

Question

Answer 1

Answer #0

This statement is True.

Reduced spending by consumers leads to decline in the demand for company's products, thereby causing decline in company's profitability.

Due to decline in the profitability, companies are forced to reduce their staff, thereby causing unemployment.

Hence, reduced spending leads to unemployment

Answer 2

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