Macroeconomics (9th Global Edition)
9th Edition
ISBN: 9780134141534
Author: Andrew B. Abel, Ben Bernanke
Publisher: Pearson Global Edition
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Chapter 8, Problem 2AP
To determine
Reason for fall in expenditure of durable good more compared to non-durable good.
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What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion?
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Macroeconomics (9th Global Edition)
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- Recessions hit parts of the economy differently. What part of the economy is usually hurt the most during a recession? Durable goods. Non-durable goods Consumer non-durable goods Consumer services like dentist appointmentsarrow_forwardWould a temporary investment tax credit for businesses or a temporary income tax cut for individuals have a greater effect on GDP? Why?arrow_forwardWhen real GDP declines during a recession, what typically happens to consumption, investment, and the unemployment rate?arrow_forward
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