Final answer:
When businesses cut production, workers may lose their jobs, leading to a decrease in spending, and potentially requiring government intervention.
Explanation:
When businesses cut production, it often leads to some workers losing their jobs as companies reduce their workforce to cut labor costs. This decline in employment can result in a decrease in aggregate spending as households may have less income to spend on goods and services. In response to such situations, governments may need to intervene with policies like increasing spending to support the economy.
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