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N76 [4]
3 years ago
10

If an economy experiences a decrease in aggregate demand due to a decline in consumer confidence and output falls below potentia

l GDP, which of the following is likely to occur?
a. rise in unemployment
b. more consumption and less saving
c. immediate adjustment back to potential GDP
d. increase in price inflation
Business
1 answer:
attashe74 [19]3 years ago
7 0

Answer:

a. rise in unemployment

Explanation:

Aggregate demand is a term describing the total demand for goods and services in the economy. If the aggregate demand rises, it means the country's population is requesting more goods and services.  Production will increase to meet the new demand, and consequently, the GDP will grow.

Should the economy experience a fall in aggregate demand, industries will  reduce the level of production.  GDP is the total production in the economy. If the output is below the potential GDP,  it implies a decline in production. The economy is slowing down. The manufacturing and service sectors will cut down production. Reduction in production mean industries will lay-off employees. Unemployment will rise as industries will not create employment opportunities for job seekers.

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its demand increases and when the price of a commodity rises,

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How much is being paid is the only thing you need to consider when considering a job offer True or fals
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False

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Read 2 more answers
"The "circuit breaker" on the domestic equities markets to reduce price volatility is INITIATED when the Standard and Poor's 500
kirill115 [55]

Answer:

7%

Explanation:

In Microeconomics, circuit breaker can be defined as a financial regulatory measure or instrument used by stock exchange organizations to temporarily halt trading on an exchange and to prevent stock market crash. The circuit breaker is also referred to as trading curb and it is used to curb panic selling in the stock markets, which eventually prevents collosal losses and speculative profits in a very short period of time.

The "circuit breaker" on the domestic equities markets to reduce price volatility is INITIATED when the Standard and Poor's 500 Index falls by 7%. The circuit breaker rule states that, if the Standard and Poor's 500 Index falls by 7% from the closing price of the previous day: the listed equity on the domestic equities markets will be shut down for 15 minutes, so as to mitigate price volatility. The 7% is the level one (1) of the circuit breaker levels for the the Standard and Poor's 500 Index (S&P 500 Index) on the stock markets.

8 0
3 years ago
Merchandise is ordered on november 10; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed b
kifflom [539]

Answer:

The answer is <u>"November 13".</u>

Explanation:

November 13 is the date from which credit period begins in the given scenario because credit period refers to the no. of days that a client is permitted to hold up or wait before paying a receipt or an invoice. It does not refer to the number of days that the client takes to pay an invoice.

6 0
4 years ago
Porter argues that a nation's firms gain competitive advantage if Group of answer choices the country has an abundant supply of
Anit [1.1K]

Answer: their domestic consumers are demanding

Explanation:

In Porter's Diamond Strategy, he explains why some nations are more competitive than others. One of the factors mentioned was the DEMAND CONDITIONS.

He posited that home demand has a huge influence on how favourable domestic industries are.

How?

A larger market at home presents companies with challenges as well as more opportunities to grow and become better and more efficient.

Striving to satiate such a demand will enable companies to scale new heights and they will learn more about consumer behavior much quicker. They will then use this knowledge to apply and conquer new markets thanks to being forced to adapt early by their own domestic market.

If you need any clarification do react or comment.

5 0
4 years ago
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