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Mrac [35]
1 year ago
15

if keynesian economists were analyzing the oncoming recession starting in 2007 from the housing market crash, what might they ha

ve predicted?
Business
1 answer:
liraira [26]1 year ago
3 0

According to the Keynesian school of thoughts, the key factors that determine equilibrium output is aggregate demand. With the crashing of the housing market, there is a deep decline in household wealth because a significant fraction of household wealth is in the form of housing. Reduced wealth leads to reduced consumption, which lowers aggregate expenditure.

<h3>What is meant by household wealth?</h3>

Household wealth is the difference between the value of a household's assets and the value of its liabilities and is one of the key determinants of private consumption.

To learn more about Household wealth, refer

brainly.com/question/14326532

#SPJ4

Complete Question is,

a. A decline in household wealth leading to a decrease in consumption expenditure.

b. Expected future incomes increasing and an increase in home purchases.

c. Declining tax revenues with cause a decrease in government spending.

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The answer is "venture capitalist".

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The venture capitalists are a private equity adequate time and resources equity to companies with a high potential for growth in exchange for an equity stake. This might finance new companies or support local businesses that want to expand but don't have access to equity markets. It aims to generate returns to individual liability thru the financing of innovations and through the assistance of businesses.

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Why do we have to have an internet connection to use this app
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3 years ago
London corp. issued 1,000 shares of stock for $20 per share. what are the effects of this transaction?
Anarel [89]

Based on the fact that London Corp, issued 1,000 shares at $20 per share, the effects of this transaction are:

  • Increase in cash
  • Increase in common stock

<h3>What happens when stock is issued?</h3>

When stock is issued newly, the stock will be sold for cash which in this case is;

= 1,000 x 20

= $20,000

This means that cash in the company has increased.

Something else that will increase is the common stock. This is the account where the value of the issued stock will go to.

Find out more on stock issuance at brainly.com/question/25562729

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8 0
1 year ago
You and seven other people relay your feelings and thoughts about a potential new product to a trained moderator. In​ exchange,
alukav5142 [94]

Answer:

Focus Group Interview

Explanation:

The reason is that the focus group is a small number of people who have great influence over the behavior of the consumer because of their knowledge and informed decision making. This is also because they know what changes in the environment are prominent these days and what product price is best choice for the features that the customer is willing to purchase. So the group of people (who largely interact with the customers) who has influence over the decision making of the customer to buy a particular product is Focus Group Interview.

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The CPI is more commonly used as a gauge of inflation than the GDP deflator is because a. the CPI is calculated more often than
Anna35 [415]

Answer:

b. the CPI better reflects the goods and services bought by consumers.

Explanation:

The Consumer Price Index (CPI) measures the change in price over a period of time (inflation) of a selected basket of goods and services that represents those goods and services that are most often bought and consumed by the average consumers.

While the GDP Deflator includes the change in price of all goods and services, even those that are not commonly purchased, CPI only includes those that are common, for example: food, gas, housing, and medical insurance. Because of this, the CPI is a better gauge of inflation, and is the index that is usually used to measure inflation.

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3 years ago
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