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) An initial decrease in autonomous spending is the trigger that creates the business cycle turning point. C) The multiplier process reinforces any decrease in spending and pushes the economy into recession. D) The change in planned spending exceeds the change in real GDP.

Question

Quizplus · Accepted Answer

The change in planned spending does not necessarily exceed the change in real GDP as the economy moves from expansion to recession.

Which of the Following Does NOT Occur as the Economy