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a good indicator is the business cycle diagram and the difference between real GDP and trend rate( which the g'ment is targeting) if real is below trend it is a good indicator that the economy is in a recession. Because this is the case firms are less likely to be spending on capital goods aka. investment spending. They may decide to fix current capital goods.

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What happens to the equilibrium price when the overall price level falls?

When the overall price level falls, the equilibrium price will usually fall, too.


Does taxation fall under the market umbrella?

Taxation does not fall under the market umbrella in the traditional sense, as it is a government-imposed financial charge rather than a voluntary exchange of goods or services that occurs in a market. However, taxation can influence market behavior by affecting consumer spending, investment decisions, and overall economic activity. While the market operates on principles of supply and demand, taxation is a regulatory mechanism that alters incentives and redistributes resources within the economy.


Everythong held constant a decline in interest rates will cause spending on housing to?

FAll


How much does the GDP increase if an economy has a crowding out effect of 50 percent?

The GDP would likely not increase because 'crowding-out' implies that the public sector is reducing private sector investment. Since usually there are additional costs to government spending because of collection and distribution, I would expect crowding out must be less efficient than private investment could be and, therefore, GDP would not increase due to crowding out but would likely fall.


How does the relationship between bond price and interest rate impact the overall performance of a bond investment?

The relationship between bond price and interest rate is inverse - when interest rates rise, bond prices fall, and vice versa. This impacts the overall performance of a bond investment because if you sell a bond before it matures, you may receive less than what you paid for it if interest rates have increased. Conversely, if interest rates have decreased, you may be able to sell the bond for more than what you paid.

Related Questions

What is included in household consumption expenditure?

Any spending that will not fall into any of the other categories (investment, Government, and Net Exports) -So taxes would go to government spending, etc.


What happens to the equilibrium price when the overall price level falls?

When the overall price level falls, the equilibrium price will usually fall, too.


Diversify your Portfolio?

Investment is one of the key methods for increasing wealth. One option to consider is gold, which has been steadily increasing in value and is poised to remain strong on the market. An investment in gold would be a wise choice as the foundation for a solid portfolio. While stocks and bonds may rise and fall, gold is the "gold standard" for investment when considering stability and overall value.


Creating appropriation bills fall under which power of congress?

Taxing and spending.


Everythong held constant a decline in interest rates will cause spending on housing to?

FAll


How can i make a woman to fall in love without spending money on her?

say nice things about her


What level do you get Bubbles in fusion fall?

on level 15


When real GDP declines during a recession what typically happens to consumption investment and the unemployment rate?

Unemployment rate rises as output falls so fewer workers are needed. Cosumption falls as people become poorer due to unemployment so they cannot spend but save so this leads to a fall in investment as firms dont make as much profit due to less people spending.


What is the alternate rise and fall in the level of sea water?

The rise and fall is the tides.


How does the relationship between bond price and interest rate impact the overall performance of a bond investment?

The relationship between bond price and interest rate is inverse - when interest rates rise, bond prices fall, and vice versa. This impacts the overall performance of a bond investment because if you sell a bond before it matures, you may receive less than what you paid for it if interest rates have increased. Conversely, if interest rates have decreased, you may be able to sell the bond for more than what you paid.


How much does the GDP increase if an economy has a crowding out effect of 50 percent?

The GDP would likely not increase because 'crowding-out' implies that the public sector is reducing private sector investment. Since usually there are additional costs to government spending because of collection and distribution, I would expect crowding out must be less efficient than private investment could be and, therefore, GDP would not increase due to crowding out but would likely fall.


What happen to the level of the mercury when you shook the thermometer?

level of mercury fall down