Which of the Following Is Likely to Lead to a Recession

question 77

Multiple Choice

Which of the following is likely to lead to a recession according to Keynesian economists?

• A)An decrease in money supply
• B)An increase in the price of oil
• C)A decrease in the rate of inflation
• D)A fall in spending by consumers

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Definitions:

Utility Function

A mathematical representation of how consumer preferences over bundles of goods or services translate into levels of satisfaction or utility.

Leisure

Time free from the demands of work or duty, where individuals may choose to engage in activities for relaxation, enjoyment, or other personal satisfaction.

Consumption

The use of goods and services by households, referring to the action and effect of consuming products.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritance, which influences consumer behavior and economic decisions.