Because a decrease in real autonomous spending results in a <u>fall</u> in the price level, the ultimate effect on real GDP is<u> smaller</u> that predicted by the multiplier.
Another significant discovery is made by Keynesian economics. You've learnt that Keynesians think fluctuations in total spending are what ultimately determine the level of economic activity in the short run (or aggregate demand).
Assume that full employment prevails in an economy because the macro equilibrium occurs at the potential GDP.
Keynes noted that even while the economy starts at potential GDP, it is improbable that it will stay there because aggregate demand has a propensity to fluctuate.
In 2007, the collapse of the housing market caused a decline in U.S. investment spending. The Great Recession subsequently hit the American economy as a result.
To learn more about Keynesian here
brainly.com/question/17247821
#SPJ4
Answer:
three
Explanation:
The Truth-in-Lending Act (TILA) applies to home loans. It requires lenders to disclose all costs related to a home loan, provides rescission rights for some transactions, and impose restrictions on home equity credits. But the TILA cannot set the interest rates or other fees charged by the lender, it only requires the lender to disclose the complete information, e.g. APR, monthly payments and amount financed.
Answer:
false
Explanation:
Internal information is the information developed from activities that occur within the organization.
Definition
