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If consumer spending is down because so many people are unemployed businesses will produce more goods or services?
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What statement describes economic activity in a recession?
Consumer Spending Declines
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
What are the effects of consumer spending?
The effects of consumer spending are reflected in in overall economy. Increase in consumer spending will mean more profits for suppliers and this translates to more revenue to the government in form of taxes.
What is the smallest component of aggregate spending in US?
consumer spending
What is the circular flow of economic activity?
[NovaNet] the movement of income from producers of goods and services to consumers, and back to producers. [Study Island] Consumer spending drives demand for goods and services.
What statement describes economic activity in a recession?
Consumer Spending Declines
What happens to consumer and businesses spending when the interest rates go up?
They both increase
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
How does government spending contribute to the circular flow of US economy?
It supports businesses by purchasing goods and services.
What place does Halloween come in on the consumer spending chart?
In 2013, Halloween came in second on the consumer spending chart. Christmas came in first on the consumer spending chart for holiday spending.
In the book the affluent society john kenneth Galbraith argued that Americans should spend more on social services and less on?
military spending and consumer goods. Galbraith advocated for shifting resources towards social programs to address inequality and improve public welfare. He believed that prioritizing social services over military and consumer spending would lead to a more equitable and prosperous society.
What are the effects of consumer spending?
The effects of consumer spending are reflected in in overall economy. Increase in consumer spending will mean more profits for suppliers and this translates to more revenue to the government in form of taxes.
What is the smallest component of aggregate spending in US?
consumer spending
What is the circular flow of economic activity?
[NovaNet] the movement of income from producers of goods and services to consumers, and back to producers. [Study Island] Consumer spending drives demand for goods and services.
What makes increased government spending an effective tool for increasing demand?
By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.
The most important determinant of consumer spending is?
consumer expectations
What Factors affect consumer spending?
The factors that affect consumer spending are: Size of Income, Future Expenditures, and Social Influences.
