A Decrease in Consumer Confidence Will Cause

question 166

Multiple Choice

A decrease in consumer confidence will cause:

• A) a downward movement along the aggregate demand curve.
• B) the aggregate demand curve to shift to the right.
• C) the aggregate demand curve to shift to the left.
• D) an upward movement along the aggregate demand curve.

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Definitions:

Decision Making

The cognitive process of selecting a course of action among multiple alternatives.

Goods And Services

Products and activities that fulfill the wants and needs of consumers, with goods being tangible objects and services being intangible activities.

Prospect Theory

A behavioral economic theory that describes how people make choices when faced with uncertainty, emphasizing the psychological value of gains and losses rather than the final outcome.

Traffic Violation

An infraction or offense committed by a driver, such as speeding or running a red light, typically resulting in fines or penalties.