« previous next »

Author Question: A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ... (Read 80 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Substrate–level phosphorylation. Substrate–level phosphorylation.
Using Controls to Monitor Results Using Controls to Monitor Results
Impacts of rising sea level Impacts of rising sea level
Ice Age Sea Level Ice Age Sea Level
The chromosomal explanation of the results of the X-linked crosses The chromosomal explanation of the results of the X-linked crosses
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Sex-Linked Traits! How are eye colors inherited in fruit flies?

For a complete list of videos, visit our video library