Author Question: A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ... (Read 92 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending.
 
  A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease

Question 2

Explain whether Delta Airlines' sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession.
 
  Whirlpool Corporation (appliance manufacturer)
   Taco Bell
   The Boeing Company (aircraft manufacturer)
   GameStop (video game sales and rentals)



ynlevi

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

A

Answer to Question 2

Delta's sales are likely to fluctuate during the business cycle less than the sales of Whirlpool and Boeing, but more than the sales of Taco Bell and GameStop. Appliances and aircraft are expensive durable goods that are sensitive to changes in economic conditions. On the other hand, fast food and video games are relatively inexpensive consumer goods that are relatively less sensitive to changes in economic conditions.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

For a complete list of videos, visit our video library