During the financial crisis of 2008, the fall in consumer spending:
A. prompted many firms to increase their output.
B. allowed many firms to increase investment spending.
C. forced many firms to lay off their workers.
D. enabled many firms to increase their prices.
Answer: C
You might also like to view...
Suppose the price of eggs decreases from $2 per egg to $1.50 per egg. Due to this decrease in price, the ____ will increase
a. producer surplus b. consumer surplus c. opportunity cost of producing an egg d. social marginal cost
The expected price level is important because
a. it is the equilibrium price level in the short run b. it determines the actual price level in the short run c. it determines the actual price level in the long run d. firms and resource owners make long-term agreements based on the expected price level
Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income
a. True b. False Indicate whether the statement is true or false
Factor mobility refers to
A. Technological change in the use of capital. B. Technological change in the use of labor. C. The ease of reallocating resources. D. The increase in labor productivity.