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Rashid [163]
4 years ago
14

During a decline in the economy, a limited number of jobs will motivate a growing number of to start new businesses.

Business
1 answer:
stepladder [879]4 years ago
6 0

Answer: Experienced but unemployed people

Explanation: In times of economic slowdown such as a recession, the rate of employment goes up.  Many qualified workers seeking employment will not be hired.  Experienced workers lose their jobs as a result of a decline in production.

The experienced worker who fails in securing new jobs ends up starting their businesses. These experienced workers already have knowledge on how to run a business, and would probably have some saving. With their qualification and experience, managing a new business is not very challenging for them.

The 2008 financial crises resulted in the establishment of many new startup businesses.

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Answer:

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b. The policies identified in part a,

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Explanation:

Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S).  This equilibrium can be achieved at a level of interest rate that maximizes output.  The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.

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