2. During a recession, people may lose their jobs. Newly unemployed people must conserve their resources - this means that they spend less than when they were employed. When spending does not take place, a chain reaction is set off that affects the whole economy. a. Write a short paragraph describing the chain reaction that is set off when a large factory is closed in a small town, throwing hundreds of people out of work

2. During a recession, people may lose their jobs. Newly unemployed people must conserve their resources - this means that they spend less than when they were employed. When spending does not take place, a chain reaction is set off that affects the whole economy. a. Write a short paragraph describing the chain reaction that is set off when a large factory is closed in a small town, throwing hundreds of people out of work

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 24CTQ: Macroeconomics is an aggregate of what happens at the Microeconomics level. Would it be possible for...

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Macroeconomics is an aggregate of what happens at the Microeconomics level. Would it be possible for what happens at the macro level to differ from how economic agents would react to some stimulus at the micro level? Hint: Think about the behavior of crowds.
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