Asked by Morgan Burroughs on May 07, 2024
Verified
Identify the correct statement.
A) During a recession,investment decreases while consumption increases.
B) During a recession,investment increases while consumption decreases.
C) During a recession,investment is constant while consumption increases.
D) Annual variations in investment are larger than annual variations in consumption.
E) Annual variations in investment are smaller than annual variations in consumption.
Recession
A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, income, employment, and other indicators.
Investment
The allocation of resources, such as capital or time, into something with the expectation of generating income or profit in the future.
Consumption
The action of using goods and services for personal needs or wants.
- Comprehend the elements that influence changes in investment and their effect on the Gross Domestic Product.
Verified Answer
Learning Objectives
- Comprehend the elements that influence changes in investment and their effect on the Gross Domestic Product.
Related questions
If a Firm's Inventory Decreases,the Gross Domestic Product (GDP)also Decreases
A Net Increase in Inventories Is Considered as Investment for ...
Inventories Help Manufacturers Cope with Unexpected Changes in the Supply ...
At a 3% Rate of Interest, You Will Quadruple Your ...
When You Were 26 Years Old, You Received an Inheritance ...