Which of the following does NOT occur as the economy moves from an expansion to a recession?
A) Incomes fall during recessions as firms cut production in response to unplanned increases in inventories.
B) The multiplier process reinforces any decrease in spending and pushes the economy into recession.
C) The change in planned spending exceeds the change in real GDP.
D) An initial decrease in autonomous spending is the trigger that creates the business cycle turning point.
Correct Answer:
Verified
Q325: Q326: Which of the following is INCORRECT? Q327: A decrease in autonomous expenditure shifts the Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
A) Firms