Question

For an economy to move out of a recession, people must ___________. a. stop creating new jobs b. avoid investing in the stock market c. avoid spending money d. begin spending money again Please select the best answer from the choices provided

Answer 1

Answer:d

Explanation:

Answer 2

Answer:

d. begin spending money again

Explanation:

Saving is seen to be detrimental to economic activity, as it weakens the potential demand for goods and services. Economic activity is depicted as a circular flow of money. Spending by one individual becomes part of the earnings of another individual, and vice versa.

To increase economic growth

Lower interest rates – reduce the cost of borrowing and increase consumer spending and investment.

Increased real wages – if nominal wages grow above inflation then consumers have more disposable to spend.

Higher global growth – leading to increased export spending.