The following question has two parts. First answer question #36, then answer #37.
Given the conditions in the headline above, what is likely to happen to spending in the economy?
A. Spending would stagnate because income is falling.
B. Spending would increase because prices are rising.
C. Spending would decrease because income is falling.
D. Spending would decrease because income is rising.
Select two consequences resulting from the choice you selected in question number #36.
A. Businesses will cut output
B. Imports will increase
C. Reduction of gross domestic product
D. Supply and demand will both increase
