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

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Definitions:

Mental Step

A stage in cognitive processing or decision-making, often used to describe phases in the buying process of consumers.

Customer Benefit Plan

A strategic outline that identifies and communicates the advantages or value a customer will gain from a product or service.

Value Analysis

A methodical approach to examining the function of goods or services to minimize cost without compromising on quality or performance.

Trial Close

A soft questioning technique used by salespeople during the sales process to gauge a prospect's readiness to buy.