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  3. Study Set
    Principles of Macroeconomics
  4. Exam
    Exam 13: Consumption and the Aggregate Expenditures Model
  5. Question
    During an Economic Downturn, Households Respond to a Decline in Income
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During an Economic Downturn, Households Respond to a Decline in Income

Question 139

Question 139

Multiple Choice

During an economic downturn, households respond to a decline in income by


A) reducing taxes.
B) reducing consumption.
C) increasing the quantity of labor supplied.
D) negotiating higher wages.

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