Yeast respires anaerobically; it disintegrates carbohydrates into simpler products namely ethanol by the process of fermentation.
The alcohol yielded varies in quality with different kinds of yeast that is employed. Yeast added to the dough ferments sugar during the baking process and generates carbon dioxide. It causes the dough to rise.
When it is baked, the gas bubbles expand causing the bread to be spongy and light. Hence yeast is used in breweries and bakeries.