Article Summary Gains in Consumer and Business Spending Gave GDP a Bigger

question 279

Multiple Choice

Article Summary
Gains in consumer and business spending gave GDP a bigger boost than was forecast in the third quarter of 2017, growing at an annualized rate of 3 percent. Motor vehicle sales following the hurricanes that struck Texas and Florida are being credited for much of the gain in consumer spending, which grew at an annualized rate of 1.6 percent, and a steady job market, low inflation, and low interest rates are expected to sustain consumer spending. Residential investment remained weak, but nonresidential investment increased 3.9 percent. Government spending declined slightly, and after-tax income increased by 0.6 percent after being adjusted for inflation.

-Refer to the Article Summary. The increase in consumer spending discussed in the article summary was expected to be sustained due in part to a steady job market, and a slight increase in after-tax income. The increase in consumption resulting from the increase in disposable income will cause a(n) ________ the aggregate expenditure curve.

• A) movement up along
• B) movement down along
• C) downward shift of
• D) upward shift of

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Definitions:

Business Finances

The management of a company's money, including budgeting, investing, and financial reporting.

Family Business Feud

What occurs when family members have major disagreements over how the business should be run.

Work Responsibilities

The duties and tasks assigned to an employee as part of their job role.

Business Strategy

A plan of action designed to achieve a long-term or overall aim within the business sector, considering internal and external factors.