Sia
Question
Macroeconomics
Posted 10 months ago
When using the expenditures approach, which category of gross domestic product (GDP) changes when domestic firms anticipate that a recession will occur soon?
Choose 1 answer:
(A) Consumption
(B) Wages
(C) Investment
(D) Government spending
(E) Net exports
Sign in to unlock the answer
Answer from Sia
Posted 10 months ago
C
Key Concept
Investment
Explanation
When domestic firms anticipate a recession, they often reduce investment spending due to expectations of lower future demand, which directly affects the investment component of GDP in the expenditures approach.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Unlock Smarter Learning with AskSia Super!
Join Super, our all-in-one AI solution that can greatly improve your learning efficiency.
30% higher accuracy than GPT-4o
Entire learning journey support
The most student-friendly features
Study Other Question