Which of the following best explains what happens when consumers think the economy is struggling?

a. people spend more, businesses produce less, and unemployment rises.
b. people spend more, businesses produce a lot, and unemployment is low.
c. people spend less, businesses produce too much, and unemployment is low.
d. people spend less, businesses produce less, and unemployment rises.

Option D. People spend less, businesses produce less, and unemployment rises.

Explanation:

When an economic struggle is perceived by society, the first group to react to this scenario are the consumers. They start to rethink every purchase they make, to substitute products or to simply stop purchasing goods. This will be reflected in the businesses actions, as if there is less demand for a product, the production of it will also decrease. Less consuming leads to less demand which will eventually live to less job positions available, which will increase the unemployment rate.

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