Which of the following likely occurs when households and firms become more pessimistic?
a. increased spending, increased aggregate demand, rising real GDP, and a rising unemployment rate
b. decreased spending, increased aggregate demand, rising real GDP, and a falling unemployment rate
c. decreased spending, decreased aggregate demand, falling real GDP, and a rising unemployment rate
d. decreased spending, decreased aggregate demand, falling real GDP, and a falling unemployment rate
c
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A "backflow" refers to:
A. Unauthorized aliens who enter an industrialized nation looking for work B. Legal aliens who enter an industrialized nation looking for work C. Migrants who enter a series of industrialized nations looking for work D. Migrants who repeatedly return to their home countries after seeking work in another country
For most countries, international goals are generally:
A. much more important than domestic goals. B. less important than domestic goals. C. slightly more important than domestic goals. D. equally important as domestic goals.
Interest is paid to
A) all holders of stock. B) individuals who own gold. C) owners of capital. D) borrowers of funds.
Assume monetary equilibrium exists—that is, the desired and the actual supply of money are equal—when nominal GDP equals $480 billion and the money supply is $160 billion. According to a strict monetarist view, an increase in the money supply of $10
billion will increase the nominal GDP by: A. $30 billion. B. $25 billion. C. $20 billion. D. $10 billion.