Figure 34-3
-Refer to Figure 34-3. 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?
A) consumption
B) investment
C) net exports
D) government spending

Question

Figure 34-3 
-Refer to Figure 34-3. 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?
A) consumption 
B) investment 
C) net exports 
D) government spending

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 34-3 -Refer to Figure 34-3. for an Economy Such as the Such