If the U.S. economy recovers from a recession and the unemployment rate falls again, consumer spending will begin to pick up again.
If the U.S. economy is in a deep recession, consumer spending will go down.
If the U.S. economy recovers from a recession and the unemployment rate drops to 5%, and the consumer spending rate goes up to 6% (as it may at the moment), then the U.S. consumer is in a deeper recession.
With this in mind, the first thing you need to do is cut your spending. Cut down on spending on things that don’t really matter. If you’re going to get a new car, start by cutting down on the stuff that you don’t really need.
You might think that this makes sense, but it doesnt. Your spending is being driven by what you dont need. If you are spending 100 dollars on a new car and your car is only worth $40, you dont really need the car. You have to cut your spending to make up for it, and if you dont cut back on your spending, then you will end up spending more in the future and end up being poorer.
So if you go from spending $100 on a new car to spending $100 on a new car, you will end up spending more money in the future. If you cut down on your spending now, you will end up spending less in the future. If you spend more on a car now, then your car will depreciate more in the future.
If you spend less on a car now, you will end up spending more on a car later. If you spend more, you will end up spending less. If you cut down on your spending now, you will end up spending less in the future. If you spend more on a car now, then your car will depreciate more in the future.
So, if your spending goes down, your car will depreciate more and you’ll spend less. If your spending goes up, then your car will depreciate less and you’ll spend more. If you spend less, then your car will depreciate less and you’ll spend less. In the end, the aggregate demand will go down for a given amount of money spent.
aggregate demand is the total amount of money spent on goods and services over a given period of time. So if your spending goes down then your aggregate demand goes down. If your spending goes up then your aggregate demand goes up. If your spending goes down then your aggregate demand goes up. So in the end, aggregate demand goes down for a given amount of money spent.
In the short term aggregate demand is negative because the money that is spent on goods and services is negative. In the long term it will turn positive; which is why the real economy is constantly working toward the future. In the medium term it will continue to decrease. But in the end it will go back to being positive because you’ve already spent money on goods and services.
