Question
Which of the following shows the correct sequence of events from an initial shock to consumption and the resulting multiplier effects? A. Investment declines, firms'
Which of the following shows the correct sequence of events from an initial shock to consumption and the resulting multiplier effects?
A. Investment declines, firms' revenue rises, labor demand shifts right, unemployment falls, asset prices fall, and the multiplier effects continue their cycle.
B. Consumption declines, firms' revenue falls, labor demand shifts left, unemployment rises, and the multiplier effects continue their cycle.
C. Consumption declines, firms' revenue falls, labor demand shifts right, unemployment falls, and the multiplier effects continue their cycle.
D. Investment declines, firms' revenue falls, labor demand shifts left, unemployment rises, asset prices rise, and multiplier effects continue their cycle.
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