What variables besides real GDP tend to decline during recessions? Given the definition of real GDP, argue that declines in these variables are to be expected
Variables that fall along with real GDP include employment, incomes, investment, sales, and home purchases. GDP may be measured as either the production of, expenditures on, or income generated from final goods and services. It follows that any other variable that could be used to measure production, expenditures, or income will generally move in the same direction as GDP.
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The poverty line in the United States
A. last changed in 1980. B. never changes. C. changes with the level of inflation and family size. D. changes with the minimum wage.
If an economy wants to experience economic growth, what decision must it make and carry out? Explain
What is the relationship between individual demand and market demand?
What will be an ideal response?