From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result?

a. deep economic depression

b. influx of foreign capital

c. lessening of foreign aid

d. merchandise trade surplus

Question

Business

Ayaan Figueroa

10 March, 07:04

From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result?

a. deep economic depression

b. influx of foreign capital

c. lessening of foreign aid

d. merchandise trade surplus

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Answers (1)

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Janessa Lam · Answer 1

a. Deep economic recession

Explanation:

According to macroeconomist when there is a decline (negative growth) in GDP of an economy for a period of about two years it often result in a deep recession.

Macroeconomics looks at things from the larger scale or broader sectors of an economy.

Therefore, Companies would reduce their production inorder to reduce the risks of losses resulting from declining gross domestic product. Which then leads to decrease in prices.

From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result?a. deep economic depressionb. influx of foreign capitalc. lessening of foreign aidd. merchandise trade surplus

From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result?

a. deep economic depression

b. influx of foreign capital

c. lessening of foreign aid

d. merchandise trade surplus