Note : please answer both the question. I will give instant upvote. For the "No, markets fail often" camp,when a negative demand shock occurs, A. workers and employers accept layoffs instead of lower wages. B. falling prices will increase consumer demand for products and services. C. falling Canadian prices decrease net exports. D. lower interest rates will increase investment. Of all parts of aggregate demand, investment spending is the A. part that is not postponable. B. largest. C. least affected by interest rates and expectations. D. most volatile, unpredictable part.
Note : please answer both the question. I will give instant upvote. For the "No, markets fail often" camp,when a negative demand shock occurs, A. workers and employers accept layoffs instead of lower wages. B. falling prices will increase consumer demand for products and services. C. falling Canadian prices decrease net exports. D. lower interest rates will increase investment. Of all parts of aggregate demand, investment spending is the A. part that is not postponable. B. largest. C. least affected by interest rates and expectations. D. most volatile, unpredictable part.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Note : please answer both the question. I will give instant upvote.
For the "No, markets fail often" camp,when a negative
A.
workers and employers accept layoffs instead of lower wages.
B.
falling
C.
falling Canadian prices decrease net exports.
D.
lower interest rates will increase investment.
Of all parts of aggregate demand, investment spending is the
A.
part that is not postponable.
B.
largest.
C.
least affected by interest rates and expectations.
D.
most volatile, unpredictable part.
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