Brazil Falls into Recession A decade ago Brazil had rapid growth, but now its economy is experienci…

Brazil Falls into Recession A decade ago Brazil had rapid growth, but now its economy is experiencing a slowdown with investment falling and inventories increasing. Potential GDP growth rate has slowed. Business and consumer confidence has fallen. Source: BBC News, August 29, 2014 a. Explain the effect of a decrease in investment on real GDP and potential GDP. b. Explain how business and consumer confidence influences aggregate expenditure.