Which Expenditure Item Is Responsible for the Decrease in Real

question 41

Multiple Choice

Which expenditure item is responsible for the decrease in real GDP during a recession?

• A) mostly investment spending
• B) mostly consumption spending
• C) mostly government spending
• D) mostly exports

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Definitions:

Sole Proprietorships

Sole proprietorships are businesses owned and operated by one person, where there is no legal distinction between the owner and the business entity.

Business Organization

A legal entity formed to carry out commercial or industrial enterprises by engaging in trading, manufacturing, or providing services.

Financial Manager

A professional responsible for managing the financial health of an organization by overseeing investment activities and planning for the long-term financial strategy.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and conduct business.