Name Two Macroeconomic Variables That Decline When the Economy Goes

question 49

Essay

Name two macroeconomic variables that decline when the economy goes into a recession. Name one macroeconomic variable that rises during a recession.

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Definitions:

Marginal Cost

The increase or decrease in the total cost incurred from producing one additional unit of a good or service.

Industry Entry

The act of a new company entering an existing market with the intention of selling goods or services.

Profit Circumstances

Situations or factors that affect a company's ability to generate earnings above its costs.