Answer: The answer is A
Explanation:
The real GDP is used to measure the price of all the goods and services produced in a country in a given period of time. When the economy is below full employment level, it indicate the presence of deflationary gap or recessionary gap in the economy. When the economy is below the full employment the real GDP will be greater but the increase in price level will be smaller the reason been that the increase has no effect on the price level of goods and services.
The deflation means a decrease in the quantity of money in circulation or a fall in prices of goods and services. The increase in the spending on the economy by the government such as the spending on the building of a Navy base or on the spending on transportation and communication would only succeeded in increasing the Real GDP but will have no effect on the price level. When there is a deflationary gap or recessionarygap in the economy, the government of a country may introduce a deflationary policy in order to influence the economy. This is done by credit squeeze, a reduction in government expenditure or a reduction in the total supply of money in the economy
Answer:
spending would increase
Explanation:
Disposable income is either saved (invested) or spent.
If stock prices are expected to fall, individuals would be less willing to save their income and would prefer to spend their income instead.
As a result, spending would increase
D) when you charge more than your current credit limit
Why: because my sister has done it and I did that question in my school
Hope this helps good luck!!
