Economics
5th Edition
ISBN: 9781319066604
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Question
Chapter 26, Problem 2BCQ
To determine
Why it was reasonable in June 2009 to predict that auto sales will improve.
Concept Introduction:
Recovery after Slump: The recovery is done after slump is done as given below:
- There are several ways of bringing the economy back to normal level from recession. If the recession is specific to a sector then bailout package by the government or the central bank is the best strategy.
- The other methods that work are inducing consumer confidence to spend more, increase in fiscal expenditure by government to increase income of the people and financial aids by foreign bank.
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