When an economy starts to recover from a recession, it is common for demand to be increased. This increase in demand can be caused by many different factors, but the most likely explanation of renewed demand in a recovery period is due to the economic policy renewing consumer confidence and demand. When one considers how consumers are more willing to spend money when they have jobs and feel confident about their prospects, it becomes clear that a change in government policy could very well cause an increase in spending. The reasoning behind this logic is as follows:
1) People with jobs will want more goods because they now have enough disposable income
2) Consumers will regain confidence after seeing the government take steps towards fixing the economy
3) Demand will be increased further because the individual has more money to spend
If one assumes that these events are what cause an increase in demand, then it can be seen that a government change is necessary for a recovery period. The event which renews consumer confidence and demand would seem to best explain renewed demand in a recovery period.
Which Event Most Likely explains Renewed Demand in a Recovery Period? Answer: The event in which the “economic policy renews consumer confidence and demand” most likely explains “renewed demand” in a recovery period. Explanation. A drastic fall in the demand for manufactured goods is one reason a recession can happen.
Which of these is the most indicative of recovery?
The answer is “The economy has started to grow again.” Economic recovery is a steady stream of business activity that demonstrates the end of a retreat.
Which of the following characteristics is associated with a prosperous phase of the business cycle?
The prosperity phase of the business cycle is characterized by high production levels.
Why is it a good idea to buy a home in a recession?
Some consumers might find buying a home in a down economy a wise decision. Housing prices are dropping. Lower demand means that buyers have more choices. Lower demand means that there is less competition from other buyers.
Which Event Most Likely explains Renewed Demand in a Recovery Period? – Similar Questions
What these graphs show the relationship between prices and employment during economic cycles Quizlet?
As unemployment rates rise, average prices fall. As unemployment rates rise, average prices fall.
What conclusion can one draw from the map?
The South tends to have the highest per capita GDP.
Which formula is correct for calculating the unemployment percentage?
The formula for unemployment rate calculation is Unemployment rate = Number of unemployed persons / Labor force. The labor force is the combination of unemployed and employed people. The labor force participation rate, or the unemployment rate, can be calculated by dividing the number who are unemployed by the labor market.
What are the four stages of the cycle to prosperity?
These four stages are expansion (peak), contraction (trough), and peak (contraction). The expansion phase is characterized by a rapid economic growth rate, low-interest rates, increased production, and rising inflation. The maximum growth rate is the point at which a cycle reaches its peak.
Which event is most likely responsible for renewed demand during a recovery?
The Business Cycle. Which event is most likely responsible for renewed demand in a recovery phase? Consumer confidence and demand are renewed by economic policy
What is depression in business cycles?
Depression is defined as an extreme downturn in economic activity, combined with a sharp drop in growth, employment, or production. Depressions are usually characterized by prolonged recessions that last more than three years or result in a decrease in annual GDP of at minimum 10%.
Brainly, why would buying a home in a recession be a good choice for some consumers?
A good time to buy a home in a recession is when housing prices are low, it is easier for a mortgage and there is less competition.
Brainly, why might you want to buy a house in a downturn?
The economy is in recession and the aggregate demand is lower. This results in housing prices being lower. Lower demand means more buyers. Lower demand means that there is less competition from other buyers for a buyer.
Which is the best description of the nature of cause & effect in the context business cycle each effect has additional effects causes and effects Cannot?
Answer Expert Verified. A is the best option to describe the nature of cause and effect within the context of the business cycles. Each effect has many effects. This is the business cycle.
Quizlet: What does the business cycle show?
What does the business cycle reveal? Fluctuations in output and employment over time. Period of economic growth; unemployment is decreasing, and workers are making high wages.
What are the signs of low inflation?
Demand continues to rise. Demand is steadily falling. Prices continue to rise. Prices continue to fall.
What can economists do to determine if a nation’s gross domestic product has fallen?
Poor leadership. Economists can identify economic shrinkage when a country’s GDP is declining. This has been confirmed to be true and helpful.
Which is a factor that limits?
A limiting factor refers to anything that limits a population’s ability to grow or slows down its growth. Examples of limiting factors include biotics, such as food, mates, and competition with other organisms to obtain resources.
What is the acceptable unemployment rate in the US, according to economists?
10% 20 percent 5 percent is considered acceptable by economists in the United States. The US average unemployment rate is 5 percent. This answer has been confirmed and is helpful.
What is the formula for labor force participation rate?
Participation rate or labor force participation rate
The labor force participation rate is calculated as: (Labor Force ÷ Civilian Noninstitutional Population) x 100.
What is the natural rate for unemployment?
Natural Rate of Unemployment: unemployment rate consistent with full employment = frictional rate + structural rate = u*. Currently, the natural rate of unemployment is between 5.5% to 6.5%.
Which formula can be used to calculate the unemployment rate Quizlet?
Which formula is correct for calculating the unemployment rate? The number of working-age people looking for work and the number of people in employment.
What are the five phases that make up the business cycle
The business’s life cycle is the progression and development of a business over time. It is commonly divided into five stages: Launch, Growth, Shake-out, Maturity, and Decline.
What is a recovery in a business cycle?
A business cycle stage that follows a recession and is marked by sustained improvement in business activity is called economic recovery. A recovery is when the economy heals from the damage it has suffered and sets the stage for the new expansion.
How has the contribution of services to GDP changed between 2009 and 2011?
This graph shows that the service industry declined by more than 3% in 2009, while it grew by more than 2.2% in 2011. As the US economy continued to grow after the recession, we can see a significant difference of over 5% in these years.
How can a depression occur?
Research suggests that depression is not caused by a lack or excess of certain brain chemicals. There are many causes of depression. These include faulty mood regulation, genetic vulnerability, and stressful life events.