which of these does not describe a weak economy

A-There is concern that unemployment may increase because fewer workers are needed

B-Aggregate demand is too low

C-The government will assume a contractionary fiscal policy position

D-The government will spend more money that it earns from tax revenue

Respuesta :

The following is the statement that does not describe weak economy

  • When Aggregate demand is too low
  • When government adopt a contractionary fiscal policy.

A weak economy is also called a sluggish economy because the growth of its macroeconomic terms is declining.

Signs of a weak economy are:

  • Increasing and worsening unemployment rate
  • Rising or Increasing inflation.
  • Increase in credit card debt defaults.
  • Increase in deficit
  • Continuous raise in interest rate etc

In conclusion, when there is a concern on increasing unemployment rate and spending more of money that it earns from Tax revenue then, such economy can be described as a weak economy.

Learn more about Weak economy here

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