2008 recession unemployment us


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  • With lower demand for goods and services, firms start laying off workers and at the same time refrain from raising prices.
    So unemployment rises and inflation falls during recessions.

The collapse of the housing bubble in 2007 and 2008 caused a deep recession, which sent the unemployment rate to 10.0% in Oct. 2009—more than double its pre-crisis rate. 1 Since then, the unemployment rate had fallen to below its pre-crisis lows, indicating that the spike in unemployment was cyclical.
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