Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what determinant of the consumption is applicable to the below three scenarios QUESTION 3. (5 points each) 3 A. First things, first. Create a list

what determinant of the consumption is applicable to the below three scenarios

image text in transcribed
QUESTION 3. (5 points each) 3 A. First things, first. Create a list of the determinants of Consumption using the information from the textbook, Chapter 5 or your class notes. (1) Read each of the three scenarios below. (2) Choose a determinant from the list (3A) which best explains what happens to Consumption in the scenario. Why did you choose that particular determinant? (3) Will Consumption increase or decrease? Explain. 3B/ A decrease in the value of real estate (real estate or property is considered an asset or part of wealth), including private homes, for example, in 2008, during the Great Recession. (If you don't know what the Great Recession is, look it up in Chapter 1, textbook). 3C/ At the end of WWII, soldiers returned to the U.S. labor force. Many of the women who worked in manufacturing lost their jobs. New homes were built, giving rise to the idea of the suburbs. The rationing of basic goods came to an end. (The section on the late 1940s-1950s in the chapter 1/textbook may help if you are not familiar with the decade of the 1950s.) 3D/ Uncertainty in the domestic economy spurred by political uncertainty, violence in American cities and towns, coronavirus pandemic

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Industries Of The Future

Authors: Alec Ross

1st Edition

1476753660, 9781476753669

More Books

Students also viewed these Economics questions