If all firms expect greater demand for their products or services, they will hire more resources.What will the economy experience in this case?
A) recession
B) growth
C) federal budget deficits
D) stagnation

Question

If all firms expect greater demand for their products or services, they will hire more resources.What will the economy experience in this case?  
A) recession 
B) growth 
C) federal budget deficits 
D) stagnation

Quizplus · Accepted Answer

When firms hire more resources due to expecting greater demand for their products or services, there will be an increase in economic activity, leading to growth in the economy. This is because more people will be employed, resulting in higher incomes and more spending, which will then generate further demand and job creation.

If All Firms Expect Greater Demand for Their Products or Services