Since the Most Recent Election, the Members in Colin's Community

question 54

Multiple Choice

Since the most recent election, the members in Colin's community have felt considerably more optimistic about the shape of the economy. As a result, the members of Colin's community have purchased more. This is most likely the result of an increase in

• A)inflation.
• B)consumer confidence.
• C)unemployment.
• D)technology.
• E)gross domestic product

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Definitions:

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.

Circular-Flow Diagram

A model that illustrates the flow of goods and services and money between households and businesses in an economy.

Households

Economic units comprising all persons who occupy a housing unit, responsible for making consumption and investment decisions.

Demanders

Individuals or entities that express a willingness and ability to purchase goods or services at a given price.