Figure 21-3.
-Refer to Figure 21-3. For an economy such as the United States, what component of the demand for goods and services is most responsible for the decrease in output from Y₁ to Y₂?

Question

Figure 21-3. Figure 21-3. -Refer to Figure 21-3. For an economy such as the United States, what component of the demand for goods and services is most responsible for the decrease in output from Y<sub>1</sub> to Y<sub>2</sub>? A) consumption B) investment C) net exports D) government spending

Figure 21-3. -Refer to Figure 21-3. For an economy such as the United States, what component of the demand for goods and services is most responsible for the decrease in output from Y<sub>1</sub> to Y<sub>2</sub>? A) consumption B) investment C) net exports D) government spending

-Refer to Figure 21-3. For an economy such as the United States, what component of the demand for goods and services is most responsible for the decrease in output from Y₁ to Y₂?

Quizplus · Accepted Answer

Investment is often the most volatile component of GDP and can significantly impact output levels. A decrease in investment can lead to a reduction in aggregate demand, causing output to fall from Y1 to Y2.

Figure 21-3. -Refer to Figure 21-3. for an Economy Such as the Such