What often results from a recession according to the information provided?

During a recession, economic activity slows down, leading to a decrease in demand for goods and services. As businesses face reduced sales, they often respond by cutting costs to stay financially viable, and one of the primary ways to cut costs is through job redundancies. This means that employees may be laid off or made redundant as companies attempt to navigate the financial challenges posed by the downturn. Consequently, this can lead to increased unemployment rates and further reduce consumer spending, creating a cycle that can prolong the recession.

The other options reflect outcomes that are less likely during a recession. For example, increased consumer spending typically occurs when consumers feel secure about their employment and the economy, which is contrary to the conditions of a recession. Similarly, higher government earnings from taxes are less likely during an economic downturn as incomes fall and unemployment rises, leading to reduced tax revenue. Finally, the expansion of businesses generally occurs in times of economic growth, not during a recession when businesses are more likely to be scaling back.