Suppose You Read in the Newspaper That a Large Decline

question 73

Essay

Suppose you read in the newspaper that a large decline in business spending has occurred. Explain how this could cause real GDP to fall. Could the decline in business spending also cause potential GDP to decline? Explain.

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Definitions:

Conclusion

The end or finish of an event, process, or text, often summarizing the arguments or results in a logical or analytical discourse.

Argument

A set of statements or reasons made to persuade others that an idea or opinion is correct or valid.

Internalized

Incorporated within oneself, often referring to beliefs, attitudes, or values that are accepted and integrated into one's own belief system.

Pride

A feeling of deep satisfaction derived from one's own achievements, the achievements of those with whom one is closely associated, or from qualities or possessions that are widely admired.