Which of the Following Does NOT Occur as the Economy

question 92

Multiple Choice

Which of the following does NOT occur as the economy moves from an expansion to a recession?

• A) An initial decrease in autonomous spending is the trigger that creates the business cycle turning point.
• B) The change in planned spending exceeds the change in real GDP.
• C) The multiplier process reinforces any decrease in spending and pushes the economy into recession.
• D) Incomes fall during recessions as firms cut production in response to unplanned increases in inventories.

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Definitions:

Homogeneous Country

A nation in which the population has a high degree of similarity or uniformity in aspects such as culture, language, or ethnicity.

Subcultures

Groups within a larger culture that have their own distinct norms, values, and traditions.

Feng Shui

An ancient Chinese philosophical system of harmonizing individuals with their surrounding environment through specific spatial arrangements.

Vertical Networks

Networks that connect businesses or individuals within the same industry or supply chain at different stages of production or service provision.