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In the short run increased consumer spending causes an increase in Aggregate Demand and therefore an increase in both Real Gross Domestic Product and Price Levels. Also this generally means; inflation, decrease in unemployment, and growth, these can vary however, depending on where on the Aggregate Supply curve the AD curve is.

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Q: Increased consumer spending will usually cause?
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How consumer spending may cause inflation to rise?

Inflation occurs when people aren't spending money, thus meaning if a consumer is spending money the prices will generally be lower, also if there is a high demand for that product


A decrease in government spending will cause a?

decrease in aggregate demand


How business environment affect the Trend and pattern of industrial growth?

The business environment has a direct impact on the trend and pattern of industrial growth. Changes in the business environment can cause shifts in the competitive landscape the availability of resources consumer spending patterns and other factors that influence the growth trajectory of an industry. Here are some of the ways in which the business environment affects industrial growth: Changes in consumer spending: An increase or decrease in consumer demand for goods or services can cause a shift in industrial growth. For example an increase in consumer spending on health care services may lead to an increase in the growth of the health care industry. Changes in regulatory environment: Changes in the regulatory environment can also impact the growth trajectory of an industry. For example an increase in the number of regulations related to the banking industry may lead to slower growth in the sector. Availability of resources: The availability of resources such as raw materials labor capital and technology can also affect industrial growth. An increase in the availability of resources may lead to an increase in the growth of an industry while a decrease in the availability of resources may lead to a decrease in the growth of an industry. Technological advances: Technological advances can have a significant impact on industrial growth. The introduction of new technologies can lead to increased efficiency improved quality of goods and services and lower production costs which can all contribute to the growth of an industry.Overall the business environment has a direct impact on the trend and pattern of industrial growth. Changes in the business environment can cause shifts in the availability of resources consumer spending patterns and other factors that influence the growth trajectory of an industry.


Will an increase in supply cause an increase in consumer suplus?

yes because increase in supply will cause decrease in price so the purchasing power of consumer will increase as a result of surplus


What is one cause of the US trade deficit?

.Increased imports from China.

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