Which of the Following Likely Occurs When Households and Firms

question 32

Multiple Choice

Which of the following likely occurs when households and firms become more pessimistic?

• A)increased spending,increased aggregate demand,rising real GDP,and a rising unemployment rate
• B)decreased spending,increased aggregate demand,rising real GDP,and a falling unemployment rate
• C)decreased spending,decreased aggregate demand,falling real GDP,and a rising unemployment rate
• D)decreased spending,decreased aggregate demand,falling real GDP,and a falling unemployment rate

---

Definitions:

Cost of Goods Sold

The direct costs attributable to goods produced and sold, including materials, labor, and manufacturing expenses.

Service Provider

An entity that provides services to other entities. This can include businesses that offer services such as internet, telecommunication, healthcare, and other essential services.

Work in Process

Inventory that includes the partially finished goods that are still undergoing manufacturing processes.

Materials

The raw substances used in the manufacturing process to create products or are part of the final product.