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When economic activity slows, businesses typically experience reduced demand for goods and services, leading them to cut costs. One of the primary ways they do this is by laying off employees or freezing hiring, resulting in increased unemployment rates. Additionally, as consumers become more cautious with their spending during economic downturns, this further exacerbates the situation, creating a cycle of reduced consumption and higher unemployment. Consequently, the overall economic environment becomes more challenging for both individuals and businesses.

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3w ago

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