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 first three are correct. Economic growth comes with the fact that:

-Workers (can) receive higher wages.
-More people acquire jobs and earn wages.
-Cost of borrowing money is lowered.ts
These and other aspects increase consumption.

Answer 2

The correct answers are, A) Workers receive higher wages, B) More people acquire jobs and earn wages, and C) Cost of borrowing money is lowered.

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 a country is living a period of economic growth, many good things happen to people. For instance, workers receive higher wages so they can invest their money in the Banks or open a new business or go on vacation. The money is circulating. Another positive consequence is people get new jobs or better jobs and then, more income to use wisely. And if a person wants to borrow some money to invest in a Project or a business, the cost of borrowing is lowered.