During recessions which type of spending falls? Group of answer choices investment but not consumption. consumption...
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.
Homework Answers
Aggregate Demand, AD = C + I + G + NX
where C = consumption spending by households
I = Investment spending
G = Government spending
NX = net exports = Exports - Imports
In recession, actual GDP falls below the potential GDP. There is a lack of consumer and investor's confidence about the future outlook of the economy. Business cycles during this phase contracts. So, both consumption and investment will fall.
Option 3rd is correct
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During recessions which type of spending falls?
Group of answer choices
investment but not consumption.
consumption...
Which of the following rises during recessions?
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
Which of the following is correct? Group of answer choices When real GDP falls, the rate...
Which of the following is correct? Group of answer choices When real GDP falls, the rate of unemployment rises. Recessions come at irregular intervals and are easy to predict. Short run fluctuations in economic activity happen only in developing countries. During economic contractions most firms experience rising profits.
The level of aggregate output demanded rises when the price level falls, because the resulting decrease in the interest rate will lead to a. higher investment spending and higher consumption spending. b. lower investment spending and higher co
1. The level of aggregate output demanded rises when the price level falls, because the resulting decrease in the interest rate will lead to a. higher investment spending and higher consumption spending.b. lower investment spending and higher consumption spending.c. higher investment spending and lower consumption spending.d. lower investment spending and lower consumption spending.
The opportunity cost of every investment in capital goods is Group of answer choices current consumption...
The opportunity cost of every investment in capital goods is Group of answer choices current consumption (consumer goods). future consumption (capital goods today). absolute advantage. comparative advantage. scarcity.
Which of the following is an example of a positive feedback loop?Group of answer choices a....
Which of the following is an example of a positive feedback loop?Group of answer choices a. When consumption spending decreases, firms increase investment spending to keep GDP from falling. b. The Government increases its spending when the economy is in a recession. c Real GDP growth reaches its peak in the business cycle and "animal spirits" cause growth rates to decrease. d.Firms decrease investment when real GDP growth is negative.
1) During a recession a. both consumption and investment fall, but consumption falls more b. both...
1) During a recession a. both consumption and investment fall, but consumption falls more b. both consumption and investment fall, but investment falls more c. consumption rises and investment falls d. investment falls and consumption rises 2) The Fed does monetary policy by raising the money supply with the hope of raising real GDP. In the long run, the result will be a. only an increase in prices b. successful as long as the Fed sells bonds in the open...
Other things the same, as the price level falls, which of the following increases? a. lending...
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
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the short-run nor long-run aggregate supply changes. short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes. the equilibrium level of real GDP is greater than potential GDP. the equilibrium level of real GDP is less than potential GDP. 2. Which of the following shifts the aggregate demand curve rightward? Group of answer choices a decrease in consumption an increase in investment...
Suppose that due to the Covid pandemic, autonomous consumption spending falls. Which of the following events...
Suppose that due to the Covid pandemic, autonomous consumption spending falls. Which of the following events are likely to follow. Check off ALL that are applicable. The aggreggate expenditure curve will shift upwards U unplanned inventory investment will rise disposable incomes will fall the aggregate price level will rise the AD curve will shift to the left the MD curve will shift to the right which will lower the interest rate
An increase in the money supply causes: Group of answer choices interest rates to rise, investment...
An increase in the money supply causes: Group of answer choices interest rates to rise, investment spending to rise, and aggregate demand to rise interest rates to fall, investment spending to fall, and aggregate demand to fall interest rates to fall, investment spending to rise, and aggregate demand to rise interest rates to rise, investment spending to fall, and aggregate demand to fall
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
Suppose that due to the Covid pandemic, autonomous consumption spending falls. Which of the following events are likely to follow. Check off ALL that are applicable. The aggreggate expenditure curve will shift upwards U unplanned inventory investment will rise disposable incomes will fall the aggregate price level will rise the AD curve will shift to the left the MD curve will shift to the right which will lower the interest rate
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