In General, as a Country's Income Increases, So Does the Demand

question 75

True/False

In general, as a country's income increases, so does the demand for imports.

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Definitions:

Contractions

Periods in the business cycle where there is a decline in economic activity, marked by reduced spending and increased unemployment.

Recession

A brief phase of economic downturn, signified by reduced commercial and industrial operations, often defined by a sequential fall in GDP over two quarters.

Expansionary Phase

A period within the business cycle where economic activity, including production, sales, and employment, is growing.

Consumer Confidence

A statistical measure that reflects the overall economic health as perceived by consumers, based on their spending and saving habits.