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18 Aug 2020
Too little spending in an economy often leads to:
A. a recession.
B. an inflation.
C. equilibrium.
D. efficiency
Too little spending in an economy often leads to:
A. a recession.
B. an inflation.
C. equilibrium.
D. efficiency
Margaux Elysse C. SiasonLv6
27 Sep 2020
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Related questions
According to classical economists, which one of the following is the correct (recommended) sequence of occurrences?
| A. | The economy is in a recession, production falls and unemployment rises ==> the government increases spending, the money supply, and lowers taxes ==> total spending rises ==> employment rises ==> GDP rises |
| B. | The economy is in a recession, production falls and unemployment rises ==> prices, wages, and interest rates decrease ==> business costs fall, profits rise, borrowing and consumer spending rise ==> employment and production rise ==> GDP rises |
| C. | The economy is in an expansion, incomes are rising and production increases ==> the government decreases spending ==> less inflation ==> the economy continues to expand |
| D. | The economy is in a recession, production falls and unemployment rises ==> spending falls ==> more layoffs ==> less production ==> more layoffs ==> deeper recession |
| E. | The economy is in an expansion ==> prices rise ==> consumer spending falls ==> production falls ==> the economy contracts (recession) |
