1. Rising Employment Numbers - More People are Getting Jobs One of the first signs of a very healthy economy is what is happening on the job scene. Traditionally, when everyone, both young and old, can land a job virtually anywhere fairly quickly, these can be very good signs of a weak economy turning around 180 degrees. Simply put, when very few people in a city, state, or country are without jobs, this economy's status usually looks very strong and thriving well.
2. Investors Seek to Buy New Businesses
When an economy looks good, investors are much more likely to invest in a new business venture. The number of new business usually rise quite dramatically as the area calls for more things that people want and can buy comfortably. Dissimilar from a struggling economy, people are no longer afraid to buy a small business or make additional investments in ventures since they will have a greater chance of being successful in a healthy economic environment.
3. Consumers Open Their Wallets to Spend More Another sign of an economy doing well usually begins with the consumer opening up their wallets to spend more money. In fact, people begin to pay more on buying a car, appliances, and a host of new innovative technologies. As these things occur, the sales will begin to increase significantly and the economy in this area is a lot more strong. Unlike a weak or struggling economy, people are no longer afraid to spend what they have earned, and they are free to spend more for conveniences that they like rather than only spending money on the things that they actually need.
4. 4. Banks Are More Apt to Approve Loans to Individuals and Businesses
When an economy is not so good, you can tell quickly when you attempt to borrow a loan from any banking or financial institution. Since the amount of money in circulation tends to be much less in bad economic times, the banks are also more conservative about making loans to people and companies, particularly those that are deemed to be any kind of business risks.
On the other hand, when the economy begins to rise significantly in a more profitable financial state, the consumer can borrow a loan from almost anywhere. This is especially the case when banking institutions begin to compete with other banks to get customers for the money that they are itching to lend to consumers during the best times.
5. Confidence Returns to the Stock Market
If you want to know how healthy an economy is, another place that you need to follow is the stock market. The stock markets around the globe normally have a huge bearing on what consumers are thinking, how well businesses are performing, and how technology is impacting the financial sector. Therefore, if you want to know if the signs of an economy are good, check the stock market to see what is going on. For instance, if the economy is good, you will hear things like the Dow Jones is rising so it is has been a good day. In fact, this is one of the best indicators of how the business world is doing and how economies are reacting to their present financial state.
If you want to know the signs of a healthy economy, you need to make sure that you are watching a wide range of activities around you. Since the economy is actually controlled by a number of different factors, you need to know exactly what you should look for so that you recognize the healthy signs of a growing economy. Usually, some of the most notable include a return of confidence to the stock market, consumers spending more money, financial institutions approving more loans, and investors seeking to buy more businesses.
People either get hired to balance out how much a company is paying their employees, or the price of their priduuct increases to balance out how much money their employees are getting paid
Answer: The Ricardian equivalence theorem states that
: <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>
Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.
This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.
