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9966 [12]
3 years ago
6

"as the interest rate decreases the planned aggregate expenditure curve shifts downward"

Business
1 answer:
Soloha48 [4]3 years ago
3 0

Answer:FALSE

Explanation: Aggregate expenditure is the total amount of goods and services rendered and paid for by both the Government or private individuals,it can also be described as the current market value of all the finished products( goods and services) in an Economy.

As the interest rate reduces the more people will be ready to make expenditures which will cause the aggregate expenditure curve to shift UPWARD. CONSUMPTION, INCOME, GOVERNMENT EXPENDITURE, NET EXPORT AND INVESTMENT are components of aggregate expenditure.

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A construction company plans to build a certain number of apartment buildings and stores on a piece of land. This PPC shows the
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Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation
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Answer:

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II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.

III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises.  It reduces when the economy enters a recession.

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Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation.  It usually cascades between the spectrum of expansion and recession.  This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.

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