Question
The economy has been officially out of the worst recession since the Great Depression for 10 years. In August, personal consumption expenditure increased by .1%
The economy has been officially out of the worst recession since the Great Depression for 10 years. In August, personal consumption expenditure increased by .1% which is a smaller increase than in the previous months where the personal consumption expenditures increased by .5% per month. How does the change in aggregate expenditures in August affect the aggregate expenditures, GDP, and employment?How does that compare to the changes in consumption in the previous months?Investment spending in August fell by .2%.How does this change in investment spending affect the aggregate expenditures, GDP, and employment? Do you feel the change in consumption, or the change in investment spending is more accurate in predicting how GDP might change in the future?Are you concerned about these changes?Why or why not?
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