Question

Select the items that describe why consumption might increase during periods of economic growth.

-Workers receive higher wages.
-More people acquire jobs and earn wages.
-Cost of borrowing money is lowered.
-Companies close and reduce labor force.

Answer 1

The ítems that describe why consumption might increase during periods of economic growth are, workers receive higher wages, more people acquire jobs and earn wages, and the cost of borrowing money is lowered.

When economy is growing, the bussiness cycle is experiencing a boom. At that stage, everything but unemployment tends to rise. There is more jobs, more production, more people in work, more capital invested on production and wiges are also higher.

Answer 2

"Workers receive higher wages" and "More people acquire jobs and earn wages" is the major reason why consumption might increase during periods of economic growth.