The Demand for _____ Is Most Severely Affected by a Recession

question 33

Multiple Choice

The demand for _____ is most severely affected by a recession.

• A)medicines
• B)automobiles
• C)breakfast cereals
• D)haircuts
• E)gasoline

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Definitions:

Household Savings

The portion of disposable income that is not used for consumption, but is set aside for future spending, emergencies, or investments.

Economic Loss

A situation where the cost of producing a good or service exceeds the revenue generated from its sale.

Investment

Positioning resources, particularly money, with the expectation of accruing income or a profit.

Capital Gains

The profit achieved from the sale of an asset, like stocks or real estate, where the sale price exceeds the purchase price.