The many job losses that occurred soon after the September 11, 2001 attacks in the United States could be viewed as just part of the first round of reduced aggregate expenditure.When did the second round occur?

A) when government starting spending more on national security
B) when people who lost jobs, or who feared they would lose their jobs, started spending less
C) when businesses invested in backup data centres in case their main computers were attacked
D) when consumers went back to shopping at the urging of government officials

Question

The many job losses that occurred soon after the September 11, 2001 attacks in the United States could be viewed as just part of the first round of reduced aggregate expenditure.When did the second round occur?
 
A) when government starting spending more on national security 
B) when people who lost jobs, or who feared they would lose their jobs, started spending less 
C) when businesses invested in backup data centres in case their main computers were attacked 
D) when consumers went back to shopping at the urging of government officials

Quizplus · Accepted Answer

The second round of reduced aggregate expenditure occurred when people who lost jobs or feared they would lose their jobs started spending less, leading to further job losses and economic downturn.

The Many Job Losses That Occurred Soon After the September