Which of the Following Is Likely to Cause a Recession

question 48

Multiple Choice

Which of the following is likely to cause a recession?

• A) A fall in unemployment.
• B) A rise in investment.
• C) A rise in consumption.
• D) A fall in total expenditure.

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Definitions:

Real Income

The earning power of a person's money, considering the effects of inflation on purchasing power.

Wages

Payment to resource owners for their labor.

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.

Precision-estimates

The accuracy of an estimate in terms of how closely it predicts the actual value, often relevant in statistical analyses and forecasting.