When Stock Prices Declined During the Great Recession,it Caused Aggregate

question 123

Multiple Choice

When stock prices declined during the Great Recession,it caused aggregate demand to decrease because

• A) households became more optimistic and increased consumer spending.
• B) the government raised taxes and decreased spending.
• C) firms' net worth decreased,leading to an increase in investment spending.
• D) household wealth decreased,leading to a decline in consumer spending.
• E) the government refused to allow the money supply to increase.

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Definitions:

Incentive Pay Systems

Compensation methods designed to motivate employees by tying a portion of their earnings to specific performance metrics.

TQM

Total Quality Management; a business management strategy aimed at embedding awareness of quality in all organizational processes.

Survey Feedback

A method of organizational development involving the collection of employee opinions and attitudes, followed by sharing the results with them to initiate change.

Interpersonal Processes

The exchanges and interactions that occur between individuals in a social or professional context.