AnswersGalliWCA 2221 CivicsEconomics 1st nine weeks 26-27Introduction to Macroeconomics

Introduction to Macroeconomics Answers

5 verified answers1 views
1
Free Preview

How does consumer spending stimulate economic growth?

A
Consumer spending pays funds directly into households.
B
Consumer spending increases withdrawals from an economy.
C
Consumer spending allows firms to flourish and new businesses to develop.
D
Consumer spending prevents a factor that can be an obstacle to production.
2
Free Preview

How does economic growth stimulate employment opportunities?

A
As an economy grows, businesses may open up new offices overseas.
B
As an economy grows, firms expand, and more workers are needed as a result.
C
Economic growth leads to withdrawals in an economy, which helps create more jobs.
D
Economic growth prevents injections, which can stop businesses from hiring workers.
3

What are examples of injections into the circular flow of income? Check all that apply.

A
Most of the workers at a struggling paper company are laid off.
B
A bank gives its customers savings accounts to encourage saving.
C
A large media company that is on the rise gives most of its workers raises.
D
A supermarket chain expands into a number of different communities.
E
Sales during the holiday season encourage consumers to spend more than normal.
4

How might a government deficit affect the circular flow of income?

A
Taxes could be increased to fix the deficit, giving consumers more money to spend.
B
Taxes could be decreased to fix the deficit, giving consumers less money to spend.
C
Government spending could rise due to the deficit, and the economy could grow.
D
Government spending could drop due to the deficit, and the economy could slow down.
5

How might a trade deal that allows two nations to freely exchange goods affect the circular flow of income?

A
Neither country is likely to experience a change in its economy.
B
One country is more likely than the other to see its economy expand.
C
The economies of both countries will likely grow due to an income increase.
D
The economies of both countries will likely slow down due to an income decrease.

Did you find these answers helpful?

More from this Course

Assignment
35 verified answers

Introduction to Macroeconomics

Assignment
25 verified answers

Economic Growth

Assignment
20 verified answers

Money

Introduction to Macroeconomics Answers…