If there is a decrease in consumer spending without any other changes, it will result in

Question

Group of answer choices

increase in the price level.

increase in unemployment rate.

increase in output produced.

decrease in unemployment rate.

Answer 1

If there is a decrease in consumer spending without any other changes, it will typically result in an increase in unemployment rate.

Here's the rationale: a decrease in consumer spending leads to lower demand for goods and services. As a result, businesses may respond by cutting back on production, which could lead to layoffs or reduced hiring, thereby increasing unemployment.

Therefore, the correct answer from your list is:

• increase in unemployment rate.