During recessions investment a. falls by a larger percentage than GDP.b. falls by about the same percentage as GDP.c. falls by a smaller percentage than GDP.d. falls but the percentage change is sometimes much larger and sometimes much smaller.

During recessions investment a. falls by a larger percentage than GDP.b. falls by about the same percentage as GDP.c. falls by a smaller percentage than GDP.d. falls but the percentage change is sometimes much larger and sometimes much smaller.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 1SCQ: Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment...

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Question

During recessions investment
a. falls by a larger percentage than GDP.
b. falls by about the same percentage as GDP.
c. falls by a smaller percentage than GDP.
d. falls but the percentage change is sometimes much larger and sometimes much smaller.

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