Which of the following rises during recessions?
layoffs and consumer spending
layoffs but not consumer spending
consumer spending but not layoffs
neither layoffs nor consumer spending
The following increases or rises during recession:-
b) layoffs but not consumer spending
During recessions which type of spending falls? Group of answer choices investment but not consumption. consumption but not investment. consumption and investment. neither consumption nor investment.
Question 6 The median duration of unemployment_during recessions. falls rises does not change Question 7
During economic downturns (recessions) consumers' incomes decrease. When this happens, consumers will change their purchases of goods and services. Which of the following types of goods will not suffer large declines in demand during recessions? Goods for which demand is income-inelastic. Goods for which demand is income-elastic Goods for which supply is inelastic. Goods with perfect ly elastic demand. Goods for which the cross-price elasticity of demand is negative.
Other things the same, as the price level falls, which of the following increases? a. lending and investment spending b. lending, but not investment spending • C. investment spending, but not lending d. neither investment spending nor lending
Which statement regarding capital investments is correct? Capital investments decrease during economic booms due to increased capital flight. When the demand for capital rises, interest rates fall. Recessions discourage capital investments because incomes of consumers grow slowly. High interest rates encourage capital investments during recessions.
1.If the Consumer Price Index rises from 101 to 104, which of the following statements is true? The average level of prices for a fixed basket of goods and services falls by 3%. The prices for all goods in the economy rise by 3%. Household income rises by 3%. Household income decreases by 3%. The average level of prices for a fixed basket of goods and services rises by 3%.
10. Suppose that consumer spending initially rises by 7 billion for every 1 percent rise in household wealth and that investment spending initially rises (or falls) by 20 billion for every percentage point fall (rise) in the real interest rate. Also, assume the economy's multiplier is 5. a. If household wealth rises by 5% and the real interest rate increases by 1%, by how much would aggregate demand initially shift at each price level? By how much and in which...
All societies experience short-run economic fluctuations around long-run trends. These fluctuations are irregular and largely unpredictable. When recessions do occur, real GDP and other measures of income, spending, and production fall, and unemployment rises. Any event or policy that raises consumption, investment, government expenditures, or net exports at a given price level increases aggregate demand, vice versa. Questions a) Which variable, investment or consumer spending has more affect on the business cycle? Why? (6 points) b) Name two macroeconomic variables...
During a recessions caused by an aggregate demand shock, we would expect inflation to __________ and unemployment to ____________. a. fall, fall b. rise, rise c. fall, rise d. rise, fall During the Great Depression there was no deposit insurance and banking panics occurred. A bank panic happens when a. banks fear that loans will be too risky and sharply cut back lending b. many depositors lose confidence and fear that loan defaults will endanger their deposits c. banks fear...
1-3-8 Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? 1. Declaration and payment of a cash dividend during the period. 2. Net income for the period. 1. 2. Neither 1 nor 2. Both 1 and 2.