Consumer spending fell significantly at the start of the pandemic by 13.6%, but increased by 5.6% in June. Economists are predicting that in the next few months consumer spending may be positive but at a much lower rate than 5.6% as additional money for unemployment is no longer available, unemployment remains high, and uncertainty of the future. Consumer spending is closely watched since it is a primary predictor of how quickly the economy will recover from the current recession. How do you expect consumer spending might change over the next few months? Why? How has your spending been changing? Are you expecting to make any big purchases in the near future?
Consumer spending fell significantly at the start of the pandemic by 13.6%, but increased by 5.6% in June. Economists are predicting that in the next few months consumer spending may be positive but at a much lower rate than 5.6% as additional money for unemployment is no longer available, unemployment remains high, and uncertainty of the future. Consumer spending is closely watched since it is a primary predictor of how quickly the economy will recover from the current recession. How do you expect consumer spending might change over the next few months? Why? How has your spending been changing? Are you expecting to make any big purchases in the near future?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consumer spending fell significantly at the start of the pandemic by 13.6%, but increased by 5.6% in June. Economists are predicting that in the next few months consumer spending may be positive but at a much lower rate than 5.6% as additional money for
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