if john is laid off and receives unemployment benefits, how does this affect the economy?\nit increases…

if john is laid off and receives unemployment benefits, how does this affect the economy?\nit increases overall spending\nit has no impact on spending\nit decreases overall spending\nit creates new job opportunities

if john is laid off and receives unemployment benefits, how does this affect the economy?\nit increases overall spending\nit has no impact on spending\nit decreases overall spending\nit creates new job opportunities

Answer

Answer:

It decreases overall spending

Brief Explanation:

When John is laid - off and relies on unemployment benefits, his income is reduced compared to when he was employed. Since consumption is a function of income, with lower income, his personal spending decreases. Aggregate spending in the economy is the sum of all individual spendings, so overall spending in the economy decreases.