What does the mixed graph suggest about the impact of economic downturns on cons

Practice Questions

Q1
What does the mixed graph suggest about the impact of economic downturns on consumer spending?
  1. Consumer spending increases during economic downturns.
  2. Economic downturns have no effect on consumer spending.
  3. Consumer spending decreases during economic downturns.
  4. Consumer spending fluctuates unpredictably during downturns.

Questions & Step-by-Step Solutions

What does the mixed graph suggest about the impact of economic downturns on consumer spending?
  • Step 1: Look at the mixed graph to identify the periods marked as economic downturns.
  • Step 2: Observe the line or bars representing consumer spending during those downturn periods.
  • Step 3: Notice if the consumer spending line or bars go down during the downturns.
  • Step 4: Conclude that the graph suggests a decline in consumer spending when the economy is not doing well.
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