Question:

Would the economy be affected if paper towel sales dropped or ceased?

by Guest55610  |  earlier

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Would the economy be affected if paper towel sales dropped or ceased?

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  1. If you mean will the economy go into recession, not very likely. But if the question is more general, yes. Money spent on paper towels are part of GDP, so if those sales suddenly stopped, GDP would go down. And that would include more than the sales of paper towels. Those jobs directly involved would vanish. The purchases of raw materials would stop; the jobs involved in making those raw materials will decrease or disappear. The inputs into the raw materials would no longer be needed. Transportation of raw materials and finished goods would not be needed, eliminating some jobs, and reducing fuel consumption. All along the way, all the sales taxes, employment taxes, fuel taxes would dry up.  And so on...

    If this is a test or homework question, please make sure you give proper attribution.

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