All categories

3 years ago

When the economy is in a severe recession, an increase in aggregate demand will lead to __________.

Business

1 answer:

tester [92]3 years ago

6 0

Answer:

The correct answer is letter "A": an increase in the long-run equilibrium level of output.

Explanation:

Aggregate Demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given period. That scenario implies aggregate demand is the demand for the Gross Domestic Product (<em>GDP</em>) of a country.

In front of a recession, the government should promote the increase the aggregate demand by <em>lowering rates</em> so more loans will be available and reachable. With more loans, more investments come and in the long term, the output is likely to hit its equilibrium point.

You might be interested in

How did the Great Depression affect economists’ beliefs about the macroeconomy?

ziro4ka [17]

<span>The Great Depression affected economists' beliefs about the macroeconomy because it made them realize that the U.S. economy actually depends on the economies of countries around the world. Prior to this, the thought was that our economy was solely dependent on actions within the U.S.</span>

7 0

3 years ago

Read 2 more answers

What are ethics?

PtichkaEL [24]

Answer:

I think it's A

Explanation:

I hope it helps

3 0

3 years ago

Labor, as a factor of production, relates only to the production of manufactured goods; services are not included. true or false

loris [4]

It is a false statement that Labor relates only to the production of manufactured goods and that services are not included.

<h3>What is a Labor?</h3>

This is a factor of production that involves individuals & machines that helps to they produce a good or service for a firm.

The reward for a Labor as a factor of production is known as Wages and Salaries.

Therefore, the statement is false because Labor helps in production of both the goods and services.

Read more about Labor

<em>brainly.com/question/17518033</em>

#SPJ1

5 0

2 years ago

Heinz changed the packaging of its ketchup, switching from a glass bottle to a plastic bottle. Since the bottle was squeezable,

azamat

This packaging change is a marketing tactic that may increase sales during the product life cycle's maturity stage.

<h3>What are the Product Stages?</h3>

The product life cycle is the progression of a product through Five distinct stages—development, introduction, growth, maturity, and decline.

<h3>What are the Maturity Stages?</h3>

The maturity stage occurs after the introduction and growth stages. The maturity stage is the longest stage of the product life cycle. In this stage, sales growth begins to decline; the company reaches the highest point in the demand cycle; and advertising strategies have minimal impact on sales growth.

<h3>What are the characteristics of a product in maturity stage?</h3>

The mature stage's main characteristic is that sales volumes are still growing but at a slower rate. The closer to the end of the mature, the slower will be the growth in sales volume. Competition for market share and customers is also more intense.

Learn more about Maturity Stages on:

brainly.com/question/12074531

#SPJ4

3 0

2 years ago

Which strategy requires a high level of understanding of what consumers value? Multiple Choice Leadership-Focus Focused-Differen

dmitriy555 [2]

Answer:

The correct option is Focused-differentiation

Explanation:

Focused-differentiation is a competitive strategy that portrays a product or service as uniquely valued,hence the customers are willing to pay higher price in return for its distinguishing characteristics

Leadership-focused is about striving to be the leader in a particular market based on either cost leadership or being the leader at offering the best in class product

Cost-focus differentiation is when a producer aims at lowest cost as well as being a unique producer of best quality

Cost leadership is about being the first to reckon with when it comes offering the most competitive price.By selling at lower prices, the company is able to appeal to customers of competing brands.

8 0

3 years ago