The following is the statement that does not describe weak economy
- When Aggregate demand is too low
- When government adopt a contractionary fiscal policy.
A weak economy is also called a sluggish economy because the growth of its macroeconomic terms is declining.
Signs of a weak economy are:
- Increasing and worsening unemployment rate
- Rising or Increasing inflation.
- Increase in credit card debt defaults.
- Increase in deficit
- Continuous raise in interest rate etc
In conclusion, when there is a concern on increasing unemployment rate and spending more of money that it earns from Tax revenue then, such economy can be described as a weak economy.
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