When there is a recessionary gap, one is likely to see an increase in overtime work and more hours worked by part-time workers.

Question

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During a recessionary gap, there is a decrease in demand for goods and services, which typically leads to a decrease in overall employment and therefore a decrease in the number of hours worked by both full-time and part-time workers. Overtime work and more hours worked by part-time workers are unlikely to occur in this scenario.

When There Is a Recessionary Gap, One Is Likely to See