ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Demand will shift to the right.
|
|
|
Demand will shift to the left.
|
|
|
Demand will not shift, but the quantity of cars sold per month will decrease.
|
|
|
Demand will not shift, but the quantity of cars sold per month will increase.
|
Detailed explanation-1: -When people have less income to spend, they will reduce their consumption, making aggregate demand fall, and consequently, the demand curve will shift to the left.
Detailed explanation-2: -During a recession, economies experience increased unemployment and a reduced level of activity. How would a recession be likely to affect the market demand for new cars? Demand will shift to the left. the quantity of a good that firms would offer for sale at different prices.
Detailed explanation-3: -During such a time of recession where people lose their jobs, the market for cars will decline. The reason is due to lower demand for cars, the price of cars is likely to decrease.
Detailed explanation-4: -A recession refers to a meaningful and extensive downturn in economic activity. A common definition holds that two consecutive quarters of decline in gross domestic product (GDP) constitute a recession. In general, recessions bring decreased economic output, lower consumer demand, and high unemployment.
Detailed explanation-5: -Economic recessions can be caused by many different elements, including loss of consumer confidence, high interest rates, a stock market crash, and asset bubbles bursting. Most events that will cause the economy to slow down can also lead to a recession if left unchecked.