The economy of country A is in recession. To deal with the problems caused by the recession, the Government has cut interest rates and reduced taxes. These changes have had a big impact on businesses in country A. The Government has also introduced laws to protect employees at work. Some people have suggested that the Government should give grants and subsidies to private sector businesses to help them survive.

1. (a)What is meant by the term 'recession'?[2]
2. (b)Identify two ways in which consumers might be affected by a recession. Way 1: Way 2:[2]
3. (c)Identify and explain two consequences of a fall in interest rates on businesses in country A. Consequence 1: Explanation: Consequence 2: Explanation:[4]
4. (d)Identify and explain three ways by which employees can be protected at work by Government laws. Way 1: Explanation: Way 2: Explanation: Way 3: Explanation:[6]
5. (e)Do you think that Governments should give financial support to private sector businesses to survive in a recession? Justify your answer.[6]