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What are characteristics of an economy that helps itself correct from a recessionary gap.
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- What are inflationary and recessionary gaps in the economy? How do they impact the economy?Why did Keynes believe that the proper response to a period of recession was for the government to increase its spending? How could this policy help to combat recession? Use diagram.What is the best formula to measure recessionary gap?
- what might explain the differences seen in the role of consumption and investment during the recession and recovery phases of the business cycle? what about the period before the recession?When real GDP declines during a recession, what typically happens to consumption, investment, and the unemployment rate?What are the key indicators and factors that contribute to the onset of a recession in an economy?
- What is the impact of recession in our economy?(please do not copy answers on the internet, thank you)Investment spending expansion O Declines; increases O Declines; declines Increases; increases O Increases; decline during an recession and during anInvestment in an economy increases by $1,000 million. Suppose marginal propensity to save is zero. But can you say about the increase in national income ,calculate.