Virtually all purchases of consumer nondurable goods do not involve extended credit terms. Yet that component of GDP exhibits a very marked cyclical pattern, always turning down during recessions. Can these declines be explained entirely by the reduction in disposable income, or are they also related to credit conditions?

Virtually all purchases of consumer nondurable goods do not involve extended credit terms. Yet that component of GDP exhibits a very marked cyclical pattern, always turning down during recessions. Can these declines be explained entirely by the reduction in disposable income, or are they also related to credit conditions?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 17SQ

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