Advertising, fashion trends and new product introductions create consumer demands. It creates consumer demands because the product is being used by most of the people since it is becoming one of the latest trends in the community.
While the responsibility for making fiscal policy lies with congress and the administration of fiscal policy occurs primarily in the treasury department. Fiscal policy is the government use of taxing, monetary and spending powers to manipulate the economy. The treasury department who manages the national debt collect income, corporate and other taxes.
Answer:
b. 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
Explanation:
Real gross domestic product (popularly called real GDP) is a macroeconomic computation of the real value of an economic output adjusted for price changes which means that of deflation or inflation. This adjustment changes the measure of money-value, nominal GDP, into an index for quantity of the overall output.
Answer: Option (b) is correct.
Explanation:
Correct option: Rising employment and falling income.
According to Keynes, the main cause of recession is inadequate aggregate demand. When the total demand for goods and services falls as a result sales of the firms decreases.
Lower demand for the products induce firms to cut down their production which results in unemployment. So, unemployment increases and lower profits further depressed demand for the goods and services. This will also lead to further reduction in income level.
Hence, during a period of recession an economy experiencing a higher unemployment and lower income.
