The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their discretionary spending even if their jobs were secure, in anticipation of coming hard times. However, this prediction has not come to pass, since there has been no increase in the amount of money set aside by the general public in savings accounts.
The answer to which of the following questions would be most useful in evaluating the significance of the savings patterns described above?
(A) What business sectors were most affected by the layoffs?
(B) How much of their savings, on average, do laid-off employees deplete before finding new employment?
(C) What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs?
(D) What percentage of people laid off have savings accounts?
(E) What has been the average salary during the period since the layoffs?
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Re: The downturn in the economy last year has prompted many companies to m
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10 Feb 2024, 05:00
downturn in economy ==> caused lay offs ==> lost of jobs
economist predicted that people will cut back in discretionary spneding in anticipation of hard times
prediction was wrong because people did not have any money inh savings account.
What would be important in finding out why people do not have money in savings a/c?
What business sectors were most affected by the layoffs? - does not help
How much of their savings, on average, do laid-off employees deplete before finding new employment? - we are talking about general public
What has been the percent increase in the cost of necessities such as food, housing, and utilities during the period since the layoffs? - Correct
What percentage of people laid off have savings accounts? - we are talking about general public
What has been the average salary during the period since the layoffs? - average salary alone will not help unless we have something more to compare with average salary