Which of the following likely occurs when households and firms become more pessimistic? a) A decrease in the unemployment rate b) A rising unemployment rate c) Decreased spending d) Increased aggregate demand

Which of the following likely occurs when households and firms become more pessimistic? a) A decrease in the unemployment rate b) A rising unemployment rate c) Decreased spending d) Increased aggregate demand

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter17: The Philips Curve And Expetactions Theory

Section: Chapter Questions

Problem 20SQ

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Question

Which of the following likely occurs when households and firms become more pessimistic?

a) A decrease in the unemployment rate

b) A rising unemployment rate

c) Decreased spending

d) Increased aggregate demand

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