0
What else can I help you with?
What economic factors that influence the personal financial planning?
Consumer Prices; Consumer Spending; Interest Rates; Unemployment; DOW JONES Average index changes, etc
What is the result of high unemployment?
A decrease in consumer spending.
How did unemployment affect consumer spending?
it equals E=mc2
Why do economists look at unemployment statistics?
Economists examine unemployment statistics to gauge the health of the labor market and the overall economy. These statistics provide insights into economic performance, consumer spending potential, and labor force dynamics. High unemployment rates can signal economic distress, while low rates may indicate growth and stability. By analyzing these figures, policymakers can implement measures to stimulate job creation and address economic challenges.
Which events led to stagflation in the 1970?
A combination of high oil prices, high unemployment, high interest rates and a resulting sharp drop in ecomomic activity and consumer spending.
What happens to consumer and businesses spending when the interest rates go up?
They both increase
Can cyclical unemployment ever have a negative impact on the economy?
Yes, cyclical unemployment can have a negative impact on the economy by reducing consumer spending, lowering overall economic output, and potentially leading to a recession.
What best describes the interest rate effect?
The interest rate effect refers to the impact of changing interest rates on consumer spending and investment. When interest rates rise, borrowing costs increase, leading to reduced consumer spending and business investment. Conversely, lower interest rates make borrowing cheaper, encouraging spending and investment, which can stimulate economic growth. This effect is a key mechanism through which monetary policy influences overall economic activity.
What happens to consumer and business spending when the interest rate goes up?
When the interest rate goes up consumer would prefer to hold less money and save more whereas business spending would face a halt since capital infusion becomes costlier.
Cite at least two tables or graphs to support your conclusion?
1 unemployment was very high 2. Consumer spending was very low
What is the most likely result of an increase in interest rates a. investment spending rises b. investment spending falls c. the economy speeds up d. unemployment falls?
b. investment spending falls
When the economy goes into a recession real GDP and unemployment?
When the economy enters a recession, real GDP typically declines as consumer spending and business investment decrease, leading to reduced economic activity. As a result, unemployment tends to rise because companies may lay off workers or halt hiring in response to lower demand for goods and services. This cycle can create a feedback loop, where rising unemployment further depresses consumer spending, exacerbating the recession.
