O-LevelEconomicsEconomic development2281/12 · May/June 2023 · Q241 Mark
During a recession, many people in a city become unemployed and their incomes fall. Some people can no longer pay the rent on their houses or buy the food they need. What is the effect of the recession in the city?
Aabsolute poverty: increases, relative poverty: increases
Babsolute poverty: increases, relative poverty: unchanged
Cabsolute poverty: unchanged, relative poverty: increases
Dabsolute poverty: unchanged, relative poverty: unchanged
✓ Correct answer
A: absolute poverty: increases, relative poverty: increases
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