Question

which is most likely to cause a recession?

A. a balanced budget

B. A decrease in total spending

C. A decrease in interest rate

D. An increase in total spending

E. None of the above

in macroeconomics equilibrium:

A. Total spending is constant

B. Total output exceeds total spending

C. The unemploymen rate fails

D. Savings exceed investment spending

E. Aggregate demand and aggregate supply are unequal

Answer 1

Which is most likely to cause a recession:

Answer: B. A decrease in total spending

*recession is a situation when economy faces decrease in GDP (gross domestic product) for two consecutive quarters. It can be due to decrease in total spending, rise in interest rate, fall in investment etc.

In macroeconomics equilibrium:

  Answer : Aggregate demand and aggregate supply are equal

*The economy is in equilibrium when the aggregate demand is equal to the aggregate supply.

*if you have typed options correctly than none of the option is right but I think you have type unequal instead of equal. the option E must be: aggegate demand and aggegate supply are equal.